Halfway through a 6-month project, the status report shows these figures. What is the Cost Performance Index (CPI), and what does it tell the sponsor?
CPI = EV ÷ AC = 45,000 ÷ 50,000 = 0.90. Below 1.0 means each dollar spent is earning only 90 cents of planned work, so the project is over budget. Option C mixes this up with SPI (EV ÷ PV), which measures schedule.
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