Paulina, a fashion designer, has a new project that requires her to make five dresses in seven days. A sum of $2,000 is allotted to her to fund the entire project. In three days, she completes one-third of the work and spends $1,2Calculate the cost performance index from the given scenario.
A) 0.55
B) 0.75
C) 0.33
D) 0.66
E) 0.25

Question

Quizplus · Accepted Answer

The cost performance index (CPI) is a measure of how well a project is performing in terms of cost. It is calculated by dividing the actual cost of work performed by the budgeted cost of work performed. In this case, Paulina has completed one-third of the work and spent $1,200. The budgeted cost of work performed is $2,000 / 7 * 3 = $857.14. Therefore, the CPI is $1,200 / $857.14 = 0.55.

Paulina, a Fashion Designer, Has a New Project That Requires