The cost of the project is given by ______.
A)multiplying the project's original budget by the reciprocal of the CPI
B)multiplying the project's original budget by the CPI
C)adding the project's original budget to the reciprocal of the CPI
D)adding the project's original budget to the CPI

Question

Quizplus · Accepted Answer

The cost of the project can be determined by multiplying the project's original budget by the reciprocal of the Cost Performance Index (CPI). The CPI is a measure of the cost efficiency of budgeted resources, expressed as a ratio of earned value to actual cost. Therefore, using the reciprocal of the CPI adjusts the original budget to reflect actual project costs more accurately.

The Cost of the Project Is Given by ______