Program Management Professional (PgMP) — Question 93

A program has a BAC of $550,000 and is currently 45 percent complete though was actually scheduled to be 55 percent complete by this time. The program has spent, however, $265,000 to date. Based on this information what is the cost performance index (CPI) for this program?

Answer options

• A. .93
• B. .82
• C. $323,889
• D. -$38,889

Correct answer: A

Explanation

The Cost Performance Index (CPI) is calculated using the formula CPI = EV / AC, where EV (Earned Value) is BAC multiplied by the percentage of completion. In this case, EV is $550,000 * 0.45 = $247,500 and AC (Actual Cost) is $265,000, resulting in a CPI of $247,500 / $265,000 = 0.93. The other options are either incorrect calculations or represent different financial metrics.