Barring a change in project scope and given a Cost Performance Index (CPI) that is less than 1, the most reasonable inference to draw is that:
A) The project will likely finish earlier than planned.
B) The project will likely finish later than planned.
C) The project will likely cost more than planned.
D) The project will likely cost less than planned.
E) The project will likely be on time and on budget.

Question

Quizplus · Accepted Answer

When the Cost Performance Index (CPI) is less than 1, it means that the project is over budget. Therefore, the most reasonable inference to draw is that the project will likely cost more than planned. Option A is incorrect as a CPI of less than 1 implies that the project is running behind schedule, so it will not finish earlier than planned. Option B is partly incorrect as it implies that the project will only finish later than planned, but it does not account for the budget implications. Option D is incorrect as a CPI of less than 1 implies that the project is over budget, not under budget. Option E is incorrect as a CPI of less than 1 implies that the project is over budget and running behind schedule, so it will not be on time and on budget.

Barring a Change in Project Scope and Given a Cost