On a predictive project, at the status date the earned value (EV) is $48,000, the planned value (PV) is $60,000, and the actual cost (AC) is $50,000. What is the cost performance index (CPI), and what does it indicate?

Question

Accepted Answer

CPI = 0.96; the project is over budget. CPI = EV / AC = 48,000 / 50,000 = 0.96. A CPI below 1.0 means you are getting less than a dollar of value for each dollar spent, so the work is over budget. Choice B is SPI (EV/PV = 0.80, which addresses schedule, not cost), and C/D invert the ratio.

On a predictive project, at the status date the earned value (EV) is $48,000, the planned value (PV) is $60,000, and the actual cost (AC) is $50,000. What is the cost performance index (CPI), and what does it indicate?

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