Based on the information below: AC = 100 SV = 80 EV = 120 Which of the following is the CPI of the project?

The correct answer is C. 1.2. CPI (Cost Performance Index) measures cost efficiency and is calculated as EV ÷ AC (Earned Value divided by Actual Cost). Using the given values: CPI = 120 ÷ 100 = 1.2. A CPI greater than 1.0 means the project is under budget (getting more value than the money spent). Note: SV…

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Question

Based on the information below:

AC = 100 SV = 80 EV = 120 Which of the following is the CPI of the project?

Options

A0.8
B0.83
C1.2
D1.25

How the community answered

(22 responses)

A
14% (3)
B
9% (2)
C
73% (16)
D
5% (1)

Explanation

CPI (Cost Performance Index) measures cost efficiency and is calculated as EV ÷ AC (Earned Value divided by Actual Cost). Using the given values: CPI = 120 ÷ 100 = 1.2. A CPI greater than 1.0 means the project is under budget (getting more value than the money spent). Note: SV (Schedule Variance) = 80 is not needed for CPI calculation - it is a distractor. SV is used for schedule analysis, not cost efficiency.

Topics

#CPI#earned value management#cost performance index#EV formula

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