nerdexam
PMI

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

Program Life Cycle Management

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)
  • A
    12% (5)
  • B
    78% (32)
  • C
    7% (3)
  • D
    2% (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.

Topics

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

Community Discussion

No community discussion yet for this question.

Full PGMP Practice