Cost performance index (CPI) equals the ratio of EV to PV, or SPI = EV/ PV. A CPI value less than 1.0 indicates a project behind schedule, and a CPI value greater than 1.0 indicates a project ahead of schedule.

Question

Quizplus · Accepted Answer

The statement is incorrect. The sentence states CPI instead of SPI in the beginning and again mentions SPI instead of CPI in the end. Additionally, the statement provides the definition of SPI instead of CPI. The correct statement would be: Cost performance index (CPI) equals the ratio of EV to AC, or CPI = EV/ AC. A CPI value less than 1.0 indicates a project over budget, and a CPI value greater than 1.0 indicates a project under budget.

Cost Performance Index (CPI) Equals the Ratio of EV to PV