When her software implementation project began, Tsuyu was warned by a peer that cost overruns were common with the project’s chosen vendor, who always underestimated the number of hours it would take to implement software into their cloud environment. What formula could become Tsuyu’s best tool if used at every project milestone, to ensure that the amount of completed work equals the amount of money spent to date?
A: CV = EV – AC
B: SPI = EV ÷ PV
C: SV = EV – PV
D: CPI = EV ÷ AC
Knowledge Area:
Control Costs
Source: ThorTeaches.com PMP practice tests
[show_more more=Answer]
D:
CPI = EV ÷ AC. The cost performance index (CPI) is a measure of the cost efficiency of budgeted resources, expressed as a ratio of earned value to actual cost. It is considered the most critical EVA metric and measures the cost efficiency for the work completed.
[/show_more]
