Program Management Professional (PgMP) — Question 23

What does CPI value less than 1.0 indicates?

Answer options

• A. Cost overrun for work completed
• B. Scheduled performance is great
• C. Cost underrun of performance to date
• D. Cost for completed work is as per estimate

Correct answer: A

Explanation

A CPI value less than 1.0 indicates that the cost incurred for the work completed is greater than what was planned, thus showing a cost overrun. Options B, C, and D are incorrect as they imply positive performance or cost savings, which contradicts the meaning of a CPI under 1.0.