PMI Project-Management-Professional PMP Question # 154 Topic 19 Discussion

According to the PMBOK Guide, 7th edition, the cost performance index (CPI) is a measure of the cost efficiency of the project. It is calculated by dividing the earned value (EV) by the actual cost (AC). A CPI of 1 indicates that the project is on budget, a CPI greater than 1 indicates that the project is under budget, and a CPI less than 1 indicates that the project is over budget. In this case, the CPI is 0.933, which means that the project is spending more than planned to achieve the same amount of work. This implies that the project will be difficult to complete as planned, unless corrective actions are taken to improve the cost performance. The other options are incorrect because they do not reflect the current situation of the project based on the CPI value. References: PMBOK Guide, 7th edition, page 267; Earned Value for the PMP® Exam; Sample PMP Earned Value Questions