All,

The following PMP® exam sample question is taken from http://www.free-pm-exam-questions.com - The answer is at the very bottom:

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PMBOK Section: Control Costs
Process Group: Monitoring and Controlling
Question Type: Calculation
Knowledge Area: Cost Management
Difficulty Level: Moderate

Question: You are managing a construction project and your project budget is $20,000. You have spent $17,000 so far and the project is 75% complete. A new project budget of $25,000 has been approved. What should be your cost performance if you want to complete your project within the new approved budget?

A. 1.667
B. 0.882
C. 0.625
D. 0.521

Hint : Calculate the TCPI based on EAC.
Reference PMBOK4 - pg:185

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Until next time,
Cornelius Fichtner, PMP
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Choice C is the correct answer to this question.

Explanation: Since you need to calculate your desired future cost performance, you should calculate the TCPI based on EAC by the formula TCPI = (BAC-EV)/(EAC-AC) = (20,000 - 15,000) / (25,000 - 17,000) = 5,000/8,000 = 0.625. .