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Exam PgMP topic 1 question 258 discussion

Actual exam question from PMI's PgMP
Question #: 258
Topic #: 1
[All PgMP Questions]

What does CPI value less than 1.0 indicates?

  • A. Cost overrun for work completed
  • B. Scheduled performance is great
  • C. Cost underrun of performance to date
  • D. Cost for completed work is as per estimate
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Suggested Answer: A 🗳️

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[Removed]
10 months, 3 weeks ago
Selected Answer: A
A. Cost overrun for work completed. The CPI is a measure used in project management to assess the cost efficiency and financial effectiveness of a project. It is calculated by dividing the Earned Value (EV) of the work performed by the Actual Cost (AC) of the work. A CPI value of less than 1.0 means that the project is costing more than planned for the work that has been completed, indicating a cost overrun. Essentially, for every unit of currency spent, less value is being earned than was anticipated in the project plan.
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SyedCert
2 years, 10 months ago
CPI = EV/AC ( > 1 : Under planned cost, < 1 : Over planned cost) CV = 1 on budget/schedule (hence D)
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Salim_7
2 years, 5 months ago
CPI is "LESS" than 1.0 => Cost overrun hence A
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tsangckl
3 years, 5 months ago
yes, less then. A
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snow5
3 years, 6 months ago
less than 1 means overrun, D if equal 1
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tsangckl
3 years, 7 months ago
it is D for sure.
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