PMP Formula of the Week: CPI of 1.0

On a performance report, what is the meaning of a CPI (Cost Performance Index) of 1.0?

A. The project is on schedule
B. Schedule variance is zero
C. Cost variance is zero
D. ETC = BAC

Reveal Answer

The correct answer is C.

The correct answer is the cost variance is zero. Answer A, the project is on schedule, and answer B, schedule variance is zero, are related to SPI (Schedule performance index). Answer D, ETC = BAC, is unrelated to the cost performance index and is normally true only at the very beginning of a project.

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PMP Formula of the Week Series

• PMP Formula of the Week: Forecasting a Necessary CPI
• PMP Formula of the Week: Forecasting a Necessary CPI Based on an ETC
• PMP Formula of the Week: Ahead or Behind Schedule
• PMP Formula of the Week: Point of Total Assumption
• PMP Formula of the Week: Rent, Lease or Buy?
• PMP Formula of the Week: Risky Task
• PMP Formula of the Week: Earned Value Management Methodology
• PMP Formula of the Week: Schedule Performance Index of 1
• PMP Formula of the Week: TCPI
• PMP Formula of the Week: Fixed-Price Incentive Fee Contract
• PMP Formula of the Week: S-Curve
• PMP Formula of the Week: Current Project Status
• PMP Formula of the Week: Project Schedule Information
• PMP Formula of the Week: Random Defective Article
• PMP Formula of the Week: Confidence Level
• PMP Formula of the Week: EV?
• PMP Formula of the Week: What is BAC?
• PMP Formula of the Week: CPI of 1.0

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