PMI-SP · Question #281
PMI-SP Question #281: Real Exam Question with Answer & Explanation
The correct answer is B. .96. Cost performance index (CPI) is used to calculate performance efficiencies. It is used in trend analysis to predict future performance. CPI is the ratio of earned value to actual cost. The CPI is calculated based on the following formula: CPI = Earned Value (EV) / Actual Cost (AC
Question
Options
- A-$11,000
- B.96
- CThere is not enough information to know.
- D1
Explanation
Cost performance index (CPI) is used to calculate performance efficiencies. It is used in trend analysis to predict future performance. CPI is the ratio of earned value to actual cost. The CPI is calculated based on the following formula: CPI = Earned Value (EV) / Actual Cost (AC) If the CPI value is greater than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor performance. The CPI value of 1 indicates that the project is right on target. In this instance, the earned value is $234,000 as the project work is 100 percent. The actual costs Answer option D is incorrect. This is the schedule performance index value. Answer option A is incorrect. This is the variance at completion for the project. Answer option C is incorrect. There is enough information to find the answer.
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