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Exam PK0-004 topic 1 question 233 discussion

Actual exam question from CompTIA's PK0-004
Question #: 233
Topic #: 1
[All PK0-004 Questions]

An active project has a CPI of 0.92. Which of the following can be determined?

  • A. The project is currently over budget.
  • B. The project has a budget surplus.
  • C. The project is ahead of schedule.
  • D. The project is behind schedule.
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Suggested Answer: A 🗳️
Reference:
http://smallbusiness.chron.com/project-management-cpi-numbers-mean-35541.html
by CyberRooster at March 14, 2023, 12:17 a.m.

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CyberRooster
2 years, 1 month ago
A. The project is currently over budget. Explanation: CPI (Cost Performance Index) is a measure of cost efficiency in a project, calculated by dividing the earned value (EV) by the actual cost (AC). A CPI of less than 1 indicates that the project is over budget, while a CPI of greater than 1 indicates that the project is under budget. A CPI of 0.92 means that for every dollar spent on the project, the project team is earning 92 cents of the planned value, which indicates that the project is over budget.
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