ITPEC FE Subject A April 2024 Question 42
ITPEC FE Subject A April 2024 — Question 42 of 60
CPI = EV / AC (Earned Value ÷ Actual Cost)
Given:
- BAC = 100,000, Duration = 4 months, Elapsed = 1 month
- AC = 20,000, Progress = "As planned"
Step-by-step:
- PV = 100,000 × (1/4) = 25,000
- EV = PV = 25,000 (because progress is as planned)
- CPI = 25,000 / 20,000 = 1.25
CPI > 1.0 means the project is under budget (spending less than planned for the work done).
Why not others:
- (a) 0.25 — this is EV / BAC, not CPI
- (b) 0.8 — this is AC / EV (inverted formula)
- (c) 1.0 — would require AC = EV
Key rule: CPI = EV / AC. Above 1.0 = under budget, below 1.0 = over budget.
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