Hi All,

The following PMP® exam sample question is taken from the Free PMP Exam
Simulator (The answer is at the very bottom):

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The total actual cost incurred in accomplishing a task on the schedule
activity is $650 and the earned value on the schedule activity is $900.
What would the cost performance index indicate?

A) Cost overruns
B) Cost underrun
C) Cost as per estimation
D) Project progress

------------------------------
Hint: CPI = EV / AC
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All our questions are updated to the latest PMBOK® Guide standard. Stop by
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Until Next Time,
Cornelius Fichtner, PMP
OSP International LLC
http://www.project-management-prepcast.com

Answer and Explanation:
The Correct Answer is B. CPI=EV/AC, EV = 900, AC = 650. Therefore, CPI =
1.38. CPI > 1 indicates cost underrun

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