CPI calculation

 

 



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.