Exam PMP topic 1 question 152 discussion

The figure is less than 1 which shows that AC>EV this means the project is earning less value than expected, A should be the right choice here.

are both A and B same thing ?

A is right answer A figure is less then 1 it means expenditure is higher then earned value

• CPI equal to 1 COST SPENT AS PLANNED • CPI less than 1 LESS WORK DONE VS THE SPENT (LESS WORK AND MORE MONEY SPENT) A CPI greater than 1 MORE WORK DONE VS THE COST SPENT

• CPI equal to 1 COST EXPENT AS PLANNED • CPI less than 1 LESS WORK DONE VS THE EXPENT (LESS WORK AND MORE MONEY EXPENT) A CPI greater than 1 MORE WORK DONE VS THE COST EXPENT

CHATGPT says Answer is B CPI is a measure of the cost efficiency of a project. It is calculated using the formula: CPI = EV AC CPI= AC EV ​ In this case, the CPI is 0.9024. A CPI of less than 1 indicates that the project is over budget, meaning it is costing more to complete the work than was planned. Therefore, the correct interpretation of a CPI of 0.9024 is that the project has started exceeding the planned cost. So, the correct answer is: B. The project has started exceeding the planned cost

CPI is less than 1, so A is correct

CPI= EV/AC < 1, so A is correct

B. The project has started exceeding the planned cost This is because the project is earning less value than what was planned for the actual cost incurred

If the CV is positive (CV>0), this means that the acquired value is greater than the actual cost (EV-AC>0 or EV>AC) and therefore the project has earned more value than planned, C is correc

The wording "has started" on B will confusing (since when). But the fact according to PMI also saying earned value must be bigger than actual cost. so answer A is more clear

A. The project is earning less value than was planned

C cannot be a correct answer, A is correct A ratio of less than 1 indicates that the project is over budget, while a ratio greater than 1 suggests that the project is under budget. In this case, a ratio of 0.9024 indicates that the project is slightly over budget.

B is the Answer. Here we talk about CPI=EV/AC so its COST.

the answer is A because we are talking value here by presenting CPI

Since A & B are same, we need to choose option which is balanced which is true in general.

CPI=EV/AC, CPI is less than 1 means project is earning less than planned. ChatGPT also got the same answer.