Project Management Professional PMP · Free Practice Question Medium
Question 38
You are a project manager for your organization. Your project has a BAC of $250,000 and is expected to last ten months. Currently, the project is in month six and is 40 percent complete, but the project was expected to be 60 percent complete by this time. You have spent $125,000 to complete the work. What is the cost performance index of the project?
- A 1.25
- B 80
- C $125,000
- D 0.80
Reveal correct answer
Correct answer: D
Explanation
The cost performance index is calculated by dividing the earned value by the actual costs. In this instance, the formula is CPI = 100,000/125,000. This results in 0.80. The CPI is 0.80, not 80. 1.25 is the incorrect value. The CPI is not a dollar amount.Discussion
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