CPI calculation
Submitted by sampathnatarajan on Tue, 07/26/2011 - 15:31
Can somebody explain how this answer is reached.
If BCWP =400, ACWP = 410, and BCWS = 350, what is the cost performance index?
A. 0-413
B. 0-82
C. 1-06
D. 1-142
Answer: D
Explanation:
Cost Performance Index (CPI): The ratio of budgeted costs to actual costs (BCWP / ACWP).
If CPI is less than 1, this means that the project is over budget.
Forums: