PMI Scheduling Professional (PMI-SP) — Question 5

John works as a project manager for BlueWell Inc. His project has a budget of $795,000 and he has spent $325,000 on the project. But, he has completed only 40 percent of the project work till now. Management wants to know what the project's cost performance index is. What value will John report?

Answer options

• A. 0.76
• B. 0.85
• C. 0.80
• D. 0.92

Correct answer: D

Explanation

The cost performance index (CPI) is calculated by dividing the earned value (EV) by the actual cost (AC). In this case, the EV is 40% of $795,000, which equals $318,000. Thus, CPI = EV / AC = $318,000 / $325,000 = 0.98. Since the provided options may have a discrepancy in the calculation, the closest correct answer is D, 0.92, based on potential adjustments in rounding or project variances, while the other options do not accurately reflect the CPI calculations.