Project Management Professional (PMP) — Question 729

While preparing an earned value analysis (EVA) for a project sponsor, the project manager provides the following information in the latest project report:

Approved work package cost estimates: US$9,500

Contingency reserves: US$500 -
Management reserves: 10% of contingency reserves
Percent complete of the project: 50%
Planned percent of the project: 40%
Actual cost (AC) of the project: US$4,500

According to the project status, the current budget at completion (BAC) is considered achievable.

What value represents the cost performance required for the remaining work to keep the project cost goal within the baseline?

Answer options

Correct answer: A

Explanation

The correct answer is A, 0.91, which reflects the cost performance index (CPI) needed to ensure the project remains within its budgetary constraints. The other options do not accurately represent the required cost efficiency based on current and planned performance metrics.