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Exam CAPM topic 1 question 266 discussion

Actual exam question from PMI's CAPM
Question #: 266
Topic #: 1
[All CAPM Questions]

What earned value (EV) measure indicates the cost efficiency of the work completed?

  • A. Cost variance (CV)
  • B. Cost performance index (CPI)
  • C. To-complete performance index (TCPI)
  • D. Variance at completion (VAC)
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Suggested Answer: B 🗳️
by 041ba31 at Dec. 17, 2023, 12:05 a.m.

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041ba31
10 months, 1 week ago
B. Cost performance index (CPI) The cost performance index (CPI) is the earned value (EV) measure that indicates the cost efficiency of the work completed on a project. It is calculated by dividing the earned value (EV) by the actual cost (AC). The CPI value greater than 1 indicates that the project is under budget and that the work is being performed efficiently. A CPI less than 1 suggests that the project is over budget and that the work is not being performed as efficiently as planned.
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