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Exam PMI-SP topic 2 question 119 discussion

Actual exam question from PMI's PMI-SP
Question #: 119
Topic #: 2
[All PMI-SP Questions]

John works as a project manager for BlueWell Inc. His project has a budget of $795,000 and he has spent $325,000 on the project. But, he has completed only 40 percent of the project work till now. Management wants to know what the project's cost performance index is. What value will John report?

  • A. 0.76
  • B. 0.85
  • C. 0.80
  • D. 0.92
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Suggested Answer: D 🗳️
Cost performance index (CPI) is used to calculate performance efficiencies. It is used in trend analysis to predict future performance. CPI is the ratio of earned value to actual cost. The CPI is calculated based on the following formula: CPI = Earned Value (EV) / Actual Cost (AC) If the CPI value is greater than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor performance. The CPI value of 1 indicates that the project is right on target. In this instance, it's

EV = 0.40 * 750,000 -
= 300,000

CPI = EV/AC -
= 300,000/325,000
= 0.92
by Mopar at Feb. 19, 2020, 1:28 a.m.

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Mopar
Highly Voted 4 years, 8 months ago
This is incorrect. It should be (40%x795,000) / 325,000 = .98
upvoted 6 times
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ed55bcd
Most Recent 8 months, 2 weeks ago
Please update the solution of this question. BAC is 795,000 not 750,000.
upvoted 1 times
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edufp0501
3 years, 8 months ago
the answer is 0.98
upvoted 4 times
...
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