Certified in Risk and Information Systems Control (CRISC) — Question 60

Which of the following is true for Cost Performance Index (CPI)?

Answer options

• A. If the CPI > 1, it indicates better than expected performance of project
• B. CPI = Earned Value (EV) * Actual Cost (AC)
• C. It is used to measure performance of schedule
• D. If the CPI = 1, it indicates poor performance of project

Correct answer: A

Explanation

The correct answer, A, is accurate because a CPI greater than 1 indicates that the project is performing more efficiently than planned. Option B is incorrect as the formula for CPI is actually CPI = EV / AC. Option C is false since CPI specifically measures cost performance, not schedule. Option D is misleading because a CPI of 1 indicates that the project is on budget, not poor performance.