Certified Associate in Project Management (CAPM) — Question 28

A project reports an earned value (EV) of US$45 for work completed with an actual cost (AC) of US$40. What is the cost performance index (CPI)?

Answer options

• A. 0.88
• B. 1.12
• C. 0.58
• D. 1.58

Correct answer: B

Explanation

The cost performance index (CPI) is calculated using the formula CPI = EV / AC. In this case, CPI = 45 / 40, which equals 1.12, making option B correct. The other options do not accurately reflect the calculation based on the provided EV and AC values.