A CPI or SPI Value Less Than One Indicates That

question 5

Multiple Choice

A CPI or SPI value less than one indicates that the project is

• A)Under cost or behind schedule.
• B)Over cost or ahead of schedule.
• C)Under cost or ahead of schedule.
• D)Over cost or behind schedule.
• E)On cost or on schedule.

---

Definitions:

First-In, First-Out

An inventory valuation method where goods first added to inventory are the first ones to be sold.

Equivalent Units

A conceptual unit used in cost accounting to represent the amount of work done on partially completed goods, allowing for the calculation of unit costs.

Finishing Department

A section in a manufacturing process where products are completed, processed further, or refined after initial production stages.

Equivalent Units

A term used in cost accounting to represent a portion of finished goods calculated by combining completed units and partially completed units.