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ISACA Certified in Risk and Information Systems Control · Isaca
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CPI = Earned Value divided by Actual Cost. If CPI > 1.0 Project is under budget (performing well). Why is CPI Important in CRISC? Helps assess financial risks in IT and business projects. Supports decision-making in cost control and budgeting. Provides insights for improving risk mitigation strategies in project management.
The correct answer is A. If the CPI > 1, it indicates better than expected performance of the project. The Cost Performance Index (CPI) is calculated as: 𝐶 𝑃 𝐼 = Earned Value (EV) Actual Cost (AC) If CPI > 1, it indicates the project is performing better than expected in terms of cost. If CPI = 1, the project is on budget. If CPI < 1, it signifies cost overruns. It is specifically used to measure cost efficiency, not schedule performance.
it is a measure of the conformance of the actual work completed to the actual cost incurred: CPI = EV / AC