A program has a BAC of $550,000 and is currently 45 percent complete though was actually scheduled to be 55 percent complete by this time. The program has spent, however, $265,000 to date. Based on…

The correct answer is A. .93. CPI = EV / AC. First, calculate Earned Value (EV): EV = BAC × % actually complete = $550,000 × 0.45 = $247,500. Actual Cost (AC) = $265,000 (given). CPI = $247,500 / $265,000 = 0.934 ≈ 0.93. A CPI below 1.0 means the program is over budget (getting less than $1 of value for…

Program Performance Management

Question

A program has a BAC of $550,000 and is currently 45 percent complete though was actually scheduled to be 55 percent complete by this time. The program has spent, however, $265,000 to date. Based on this information what is the cost performance index (CPI) for this program?

Options

A.93
B.82
C$323,889
D-$38,889

How the community answered

(33 responses)

A
85% (28)
B
9% (3)
C
3% (1)
D
3% (1)

Explanation

CPI = EV / AC. First, calculate Earned Value (EV): EV = BAC × % actually complete = $550,000 × 0.45 = $247,500. Actual Cost (AC) = $265,000 (given). CPI = $247,500 / $265,000 = 0.934 ≈ 0.93. A CPI below 1.0 means the program is over budget (getting less than $1 of value for every $1 spent). Note: The scheduled completion percentage (55%) is used to calculate SPI (Schedule Performance Index), not CPI.

Topics

#Earned Value Management (EVM)#Cost Performance Index (CPI)#Program Performance Measurement#Cost Control

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