PMP Exam Question 145

Aligned with PMBOK 6th Edition®.

Cost Performance Index :

In your IT project, you have recently carried out Earned Value calculations. The Cost Performance Index is 0.8. What is your interpretation of this result?

A. Your project is under planned cost.
B. Your project is on planned cost.
C. Your project is over planned cost.
D. Your project is behind schedule.

October 3, 2020

2 responses on "PMP Exam Question 145"

  1. PMP® Solution 145

    Cost Performance Index (CPI) is a measure of the cost efficiency of budgeted resources expressed as the ratio of earned value to actual cost. A CPI of 1.0 means the project is exactly on budget, that the work actually done so far is exactly the same as the cost so far. Other values show the percentage of how much costs are over or under the budgeted amount for work accomplished. CPI = EV/AC. CPI Greater than 1.0 = Under planned Cost. CPI Exactly 1.0 = On planned cost. CPI Less than 1.0 = Over planned cost. Therefore right answer is C. [PMBOK 6th edition, Page 267] [Project Cost Management]

    Cheers

  2. C-Over planned cost. The actual cost is greater than the earned value.

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