Question 1

What does the Cost Performance Index (CPI) formula measure, and how is it calculated?

Accepted Answer

CPI measures cost efficiency of work performed. It is calculated as EV ÷ AC. A CPI above 1.0 means you are under budget; below 1.0 means over budget.

Question 2

What does the Schedule Performance Index (SPI) formula measure, and how is it calculated?

Accepted Answer

SPI measures schedule efficiency of work performed. It is calculated as EV ÷ PV. An SPI above 1.0 means ahead of schedule; below 1.0 means behind schedule.

Question 3

What is the formula for Estimate at Completion (EAC) when the current CPI is expected to continue for the remainder of the project?

Accepted Answer

EAC = BAC ÷ CPI. This formula is used when future work is expected to be performed at the same efficiency rate as work completed to date.

Question 4

What is Cost Variance (CV) and how is it interpreted?

Accepted Answer

CV = EV – AC. A positive CV means the project is under budget (good); a negative CV means the project is over budget (bad).

Question 5

What is Schedule Variance (SV) and how is it interpreted?

Accepted Answer

SV = EV – PV. A positive SV means the project is ahead of schedule; a negative SV means the project is behind schedule.

PMP Exam: Schedule & Cost Management

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