Certified Associate in Project Management (CAPM) — Question 55

What earned value (EV) measure indicates the cost efficiency of the work completed?

Answer options

• A. Cost variance (CV)
• B. Cost performance index (CPI)
• C. To-complete performance index (TCPI)
• D. Variance at completion (VAC)

Correct answer: B

Explanation

The Cost Performance Index (CPI) measures the cost efficiency of the work accomplished, indicating how much value is earned for each dollar spent. Cost variance (CV) provides a dollar amount of cost performance but does not directly measure efficiency, while the To-complete performance index (TCPI) and Variance at completion (VAC) focus on future performance and overall project completion costs, respectively.