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Project Management Professional · PMI
Select one answer.
Written by other learners. Comments can disagree with the marked answer — check the official documentation when in doubt.
EV / AC = 0.9024 This ratio is called the Cost Performance Index (CPI). 🔍 How to interpret CPI: CPI = EV / AC CPI = 1.0 → On budget CPI > 1.0 → Under budget (good) CPI < 1.0 → Over budget (bad) Here: CPI = 0.9024 < 1.0 This means: For every $1.00 spent (AC), the project is only earning $0.90 of value (EV). The project is cost inefficient. The project is over budget.
A should be the correct answer
Its slightly confusing, but the answer should be A, as it is clear the expected planned value is less than actual cost. Option B says the cost 'started' to exceed the value how can anyone confirm whether cost started exceeding value ? assume if the EV/AC was 0.7 last month and now it is 0.9 then we cant say the cost started exceeding the value right? hence answer has to be A