Question: Knowing that the Cost Performance Index represents value earned in the project - the amount of completed work for every unit of cost spent. In

Knowing that the Cost Performance Index represents value earned in the project - the amount of completed work for every unit of cost spent. In your own words, explain why a CPI over 1 represents under budget. Use the fact that $1.00 has been spent and your CPI is 1.23. What does "1.23" mean?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

You are a Project Manager for a Computer Software Integration Company managing the acquisition and amalgamation of three other companies. The project is scheduled for 10 months and must be finished...

Method 1 means forecasting cost using the earned value Method 2 means forecasting cost using CPI (Cost Performance Index) "Using Earned Value Management for Project Managers" Course Project Part One:...

please show work and how you got the answers! Your 12-month project has a total cost of $1 Million. After three months you have spent $600K. The project was planned to be 60% complete but in actual...

Imagine that everything is executed perfectly. You have now reached the end of time period 1 6 . Activity 4 - 5 is completed as scheduled, and Activity 3 - 6 is also finished, two periods ahead of...

Refer back to the sample project examined in the project, part two, and imagine that everything is executed perfectly. You have now reached the end of time period 1 6 . Activity 4 - 5 is completed as...

What is the new forecasted total cost at completion if you use Method 1 ? What is the new forecasted total cost at completion if you use Method 2 ? Each activity has a Planned Value, or estimated...

3 4 . Baseline Performance: A cost performance index ( CPI ) of 0 . 8 9 means the project is spending behind plan by 1 1 % . Thus, CPI represents a measure that indicates a . Project spending is only...

1 You are managing a project, and the project sponsor has requested a change that will potentially impact the project's scope. What should you do first? Select one: a. Reject the change request, as...

Accounting INTRODUCTION was ready for retirement; Peregrine had fit the bill. Founded in 1977, Peregrine had been operated profitably foFrench considered the details of each option, keeping in mind...

Read the following about EXPRESS JET AIRLINES and give your response: Evaluate the ExpressJet leadership and management philosophies.

BE20.11 (LO 3) Geiberger AG manufactures drones. On December 31, 2024, it leased to Althaus SA a drone that had cost 120,000 to manufacture. The lease agreement covers the 5-year useful life of the...

As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes...