At the end of three months, the cost factors in A&B's healthcare project are as follows: Earned value = $17,000, Actual cost = $18,200. What is the cost variance CV) and cost performance index CPI) for the project?
A) $+1,200; 1.07
B) $-1,200; 0.93
C) $-1,200; 1.07
D) $+35,200; 0.93
E) $+35,200; 1.07

Question

Quizplus · Accepted Answer

CV = Earned Value - Actual Cost
CV = $17,000 - $18,200
CV = -$1,200

CPI = Earned Value / Actual Cost
CPI = $17,000 / $18,200
CPI = 0.93

Therefore, the correct answer is B, as it matches both the CV and CPI calculated above.

At the End of Three Months, the Cost Factors in A&B's