If We Know the Actual Cost of a WBS Component

question 59

Multiple Choice

If we know the Actual Cost of a WBS component, what other value do we need to know in order to calculate the cost performance index (CPI) ?

• A) Budget at Completion (BAC)
• B) Budget costs of remaining work (BCRW)
• C) Schedule Variance (SV)
• D) Expected Time Complete (ETC)
• E) Earned Value (EV)

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Definitions:

Induced Consumption

The portion of consumer spending that changes in response to changes in disposable income.

Disposable Income

The sum of funds that individuals or families can allocate towards savings or expenditure once they've deducted income taxes.

Disposable Income

The liquidity pool available for households to channel into saving and spending after income tax deductions.

Induced Consumption

The part of consumer spending that increases when disposable income rises and decreases when disposable income falls.