PGMP · Question #338
You are the program manager of the HNG Program. This program has a budget at completion of $2,345,900 and is expected to last two years. The program is currently 30 percent complete and you have spent
The correct answer is B. 11. This question asks for the Cost Performance Index (CPI) loss per dollar. EV (Earned Value) = 30% × $2,345,900 = $703,770. AC (Actual Cost) = $789,000. CPI = EV ÷ AC = $703,770 ÷ $789,000 ≈ 0.892. This means for every dollar spent, only $0.892 worth of work is being produced - a l
Question
You are the program manager of the HNG Program. This program has a budget at completion of $2,345,900 and is expected to last two years. The program is currently 30 percent complete and you have spent $789,000. The program is supposed to be 35 percent complete but do to some delays you're slightly behind schedule. Based on this information, how many pennies is the program losing per dollar invested in the program work?
Options
- A17
- B11
- C15
- D14
How the community answered
(41 responses)- A12% (5)
- B78% (32)
- C7% (3)
- D2% (1)
Explanation
This question asks for the Cost Performance Index (CPI) loss per dollar. EV (Earned Value) = 30% × $2,345,900 = $703,770. AC (Actual Cost) = $789,000. CPI = EV ÷ AC = $703,770 ÷ $789,000 ≈ 0.892. This means for every dollar spent, only $0.892 worth of work is being produced - a loss of approximately $0.108 per dollar, which equals about 11 cents (11 pennies). Answer: B - 11 pennies per dollar invested.
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