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PMP (Project Management Professional) · Question

What does a Cost Performance Index (CPI) of less than 1.0 indicate?

A CPI less than 1.0 means that the project is getting less value than planned for the actual cost incurred, indicating an over-budget status.

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Question: What does a Cost Performance Index (CPI) of less than 1.0 indicate?

Answer options: ✅ The project is over budget

  • The project is under budget
  • The project is ahead of schedule
  • The project is behind schedule

Correct answer: The project is over budget

Explanation: A CPI less than 1.0 means that the project is getting less value than planned for the actual cost incurred, indicating an over-budget status.

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