What is the current cost performance index (CPI)?

The following question requires your selection of CCC/CCE Scenario 2 (2.3.50.1.2) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

9,375 hours have been expended to date. Planned completion at this time is 75%. The project is determined to be 66% complete.

What is the current cost performance index (CPI)?
A . 0.96
B . 0.84
C . 1.14
D . 0.88

View Answer

Answer: B

Explanation:

The Cost Performance Index (CPI) is calculated using the formula:

CPI=Earned Value (EV)Actual Cost (AC)text{CPI} = frac{text{Earned Value (EV)}}{text{Actual Cost (AC)}}CPI=Actual Cost (AC)Earned Value (EV)

Where:

EV (Earned Value) is the percentage of completion multiplied by the total budgeted hours.

AC (Actual Cost) is the total hours expended.

Given:

Total Budgeted Hours = 12,000 hours

Percent Complete = 66%

Actual Hours Expended (AC) = 9,375 hours

EV=12,000×0.66=7,920 hourstext{EV} = 12,000 times 0.66 = 7,920 text{ hours}EV=12,000×0.66=7,920 hours CPI=7,9209,375≈0.84text{CPI} = frac{7,920}{9,375} approx 0.84CPI=9,3757,920≈0.84

So, the correct answer is B. 0.84.