Program Management Professional (PgMP) — Question 205

You are the program manager for the GHT Program for your company. This program has a budget at completion of $789,000 and is currently 40 percent complete, though it was scheduled to be 50 percent at this time. Your program has spent $325,000 of the budget to date. Based on this information, how many pennies is your program losing per dollar spent on the work?

Answer options

Correct answer: C

Explanation

To determine how many pennies the program is losing per dollar spent, we first calculate the earned value (EV) at 40% completion, which is $315,600. The actual cost (AC) is $325,000. The cost performance index (CPI) can be calculated as EV/AC, resulting in a loss of approximately $3 for every $100 spent, or 3 pennies per dollar. The other options do not reflect the correct ratio of loss per dollar spent.