What Is the Purpose of a Cost Performance Index (CPI)

question 24

Multiple Choice

 What is the purpose of a cost performance index (CPI) ?

• A) indicate that a project is under budget if CPI is less than one
• B) estimate the projected cost of completing the project
• C) indicate that the planned and actual costs are equal if CPI is more than one
• D) estimate the ratio of earned value to planned value

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Definitions:

Foreign Debt

Money borrowed by a country from foreign lenders, including international organizations, governments, or commercial banks.

National Currency

The official money issued and used by a specific country, serving as its primary medium of exchange.

Foreign Goods

Products or services that are produced outside one's own country and are imported for use or sale.

Manufacturing Sector

A segment of the economy dedicated to the production of goods through the processing of raw materials and the use of machinery.