Certified Associate in Project Management (CAPM) — Question 285

A project manager is working on project cost management. The following information is current:

• Planned value = 30
• Actual cost = 35
• Earned value = 28

Considering this data, which project indicator is correct?

Answer options

• A. Schedule Variance (SV) = 2
• B. Cost Performance Index (CPI) = 0.80
• C. Schedule Performance Index (SPI) = 1.93
• D. Cost Variance (CV) = 7

Correct answer: B

Explanation

The Cost Performance Index (CPI) is calculated as Earned Value divided by Actual Cost, which results in 28/35 = 0.80, making option B correct. Option A is incorrect because Schedule Variance (SV) is calculated as Earned Value minus Planned Value, which equals -2. Option C is wrong as Schedule Performance Index (SPI) is calculated as Earned Value divided by Planned Value, resulting in approximately 0.93. Option D is also incorrect since Cost Variance (CV) is calculated as Earned Value minus Actual Cost, which equals -7.