PK0-003 · Question #447
Which of the following would be the impact upon a project if the CPI for the project is .75?
The correct answer is D. The project is over-budget.. A CPI (Cost Performance Index) of 0.75 indicates that a project is performing below budget expectations, specifically that it is over-budget for the work completed.
Question
Which of the following would be the impact upon a project if the CPI for the project is .75?
Options
- AThe project is under-budget.
- BThere would be a 25 percent cost decrease.
- CThere would be a 75 percent cost increase.
- DThe project is over-budget.
How the community answered
(38 responses)- A13% (5)
- B3% (1)
- C8% (3)
- D76% (29)
Why each option
A CPI (Cost Performance Index) of 0.75 indicates that a project is performing below budget expectations, specifically that it is over-budget for the work completed.
The project is under-budget only if the CPI is greater than 1.0, meaning less money was spent than planned for the work completed.
A CPI of 0.75 means that for every dollar spent, only 75 cents worth of work was earned, which indicates an over-budget status, not a 25 percent cost decrease.
A CPI of 0.75 means the project is achieving 75% of the planned value for its cost, it does not directly translate to a 75 percent cost increase.
A CPI of less than 1.0 signifies that the project is spending more money than planned for the amount of work accomplished, thereby indicating that it is over-budget.
Concept tested: Interpreting Cost Performance Index (CPI)
Source: https://learn.microsoft.com/en-us/azure/devops/report/powerbi/cost-performance-index?view=azure-devops
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