The cost performance analysis should include identifying those work packages that have a negative cost variance or a cost performance index of less than ____.
A) 0.0
B) 1.0
C) 5.0
D) 100.0

Question

Quizplus · Accepted Answer

The cost performance index (CPI) is calculated by dividing earned value (EV) by actual cost (AC), CPI=EV/AC. A CPI of less than 1.0 indicates that the project is over budget, so option B is the best choice which indicates the work packages with a CPI of less than 1.0.

The Cost Performance Analysis Should Include Identifying Those Work Packages