📋 PMP Exam Prep

Cost Performance Index (CPI) measures:

A Schedule efficiency
B Cost efficiency as the ratio of earned value to actual cost (EV/AC)
C Quality
D Risk

✓ Correct Answer: Option B

CPI = EV/AC. CPI > 1 = under budget, CPI < 1 = over budget, CPI = 1 = on budget.

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