If we know the Actual Cost of a WBS component, what other value do we need to know in order to calculate the cost performance index (CPI)?
A) Budget at Completion (BAC)
B) Budget costs of remaining work (BCRW)
C) Schedule Variance (SV)
D) Expected Time Complete (ETC)
E) Earned Value (EV)

Question

Quizplus · Accepted Answer

In order to calculate the Cost Performance Index (CPI), we need to know the Earned Value (EV) of the work completed in addition to the Actual Cost (AC) of the work completed. The CPI is calculated by dividing EV by AC. Therefore, we only need to know the Earned Value (EV) to calculate the CPI if we already know the Actual Cost (AC).

If We Know the Actual Cost of a WBS Component