The Cost Performance Index (CPI) is calculated using the formula CPI = EV / AC. Given that the Earned Value (EV) is $300,000 and the Actual Cost (AC) is $350,000, the CPI would be $300,000 / $350,000, which equals approximately 0.86. This means that for every dollar spent, only $0.86 of value is earned, indicating a cost efficiency below 1, which signals that the project is over budget.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
What does Earned Value (EV) mean in project management?
Open an interactive chat with Bash
What is the significance of the Cost Performance Index (CPI)?
Open an interactive chat with Bash
What does it mean if the CPI is below 1?
Open an interactive chat with Bash
This question's topic:
PMI Project Management Professional (PMP) /
Process
Report Issue
Oh snap!
Loading...
Loading...
Join premium for unlimited access and more features