Earned Value Definitions
Cost Performance Index (CPI)

What is Cost Performance Index (CPI)? Earned Value Management explained.


Cost Performance Index (CPI) measures the cost efficiency of the project by comparing the earned value (EV) to the actual cost (AC) incurred. A CPI value greater than 1 indicates cost efficiency, while a value less than 1 suggests cost overruns. CPI helps in evaluating cost control measures.

Calculation: CPI = EV / AC

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