Free PMI Project Management Professional (PMP) Practice Question

A project has a Budget at Completion (BAC) of $500,000, an Actual Cost (AC) of $200,000, and an Earned Value (EV) of $180,000. What is the project's Cost Performance Index (CPI), and what does it indicate about the project's cost efficiency?

  • 1.25, indicating the project is under budget

  • 1.0, indicating the project is on budget

  • 0.90, indicating the project is over budget

  • 0.80, indicating the project is on track

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