PGMP · Question #450
The customer of a three-year program does not want to receive any intermediate details on the program. The program appears to be in trouble and the customer is concerned about a new system's cost. The
The correct answer is D. Cost performance index. The Cost Performance Index (CPI) = EV / AC is the single most efficient metric for a customer who wants a high-level view of cost efficiency without intermediate detail. A CPI of 1.0 means the program is on budget; below 1.0 indicates overspending per unit of value delivered. Sin
Question
The customer of a three-year program does not want to receive any intermediate details on the program. The program appears to be in trouble and the customer is concerned about a new system's cost. The program manager has provided monthly performance reports throughout the program's life cycle. Which of the following would the customer be interested in reviewing?
Options
- AEstimate to complete
- BEstimate at completion
- COriginal cost baseline
- DCost performance index
How the community answered
(49 responses)- A8% (4)
- B16% (8)
- C4% (2)
- D71% (35)
Explanation
The Cost Performance Index (CPI) = EV / AC is the single most efficient metric for a customer who wants a high-level view of cost efficiency without intermediate detail. A CPI of 1.0 means the program is on budget; below 1.0 indicates overspending per unit of value delivered. Since the customer is specifically concerned about cost and doesn't want granular details, the CPI provides a concise, interpretable cost efficiency indicator. ETC (A) requires understanding of remaining work context. EAC (B) is a useful total-cost forecast but requires more explanation. The original cost baseline (C) is a static reference point, not a performance indicator. CPI communicates cost performance most directly.
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