GIAC Exam GCPM Topic 8 Question 42 Discussion

Actual exam question for GIAC's GCPM exam

Question #: 42
Topic #: 8

[All GCPM Questions]

You work as a project manager for company Inc. You are working on a project that has a budget of $805,000 and you have completed 45 percent of the project work. Due to some errors, however, you have actually spent $430,000 of the budget. Management wants to know the project's cost performance index. Which of the following values will you report?

A0.87

B0.80

C0.86

D0.84

Show Suggested Answer

Suggested Answer: D

by Gertude at Apr 11, 2024, 10:47 AM

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Viva

8 months ago

That gives us a cost performance index of 362,250 / 430,000 = 0.84, so the correct answer should be D) 0.84.

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Pete

8 months ago

I agree with In. The formula for cost performance index is EV/AC.

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Lucy

8 months ago

So, if we plug in the numbers, EV is $805,000 x 45% = $362,250, and AC is $430,000.

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In

9 months ago

I think the cost performance index should be calculated as the ratio of earned value to actual cost.

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Juan

9 months ago

I think it will be 0.84 based on how much of the budget we've actually used.

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Linn

9 months ago

I agree with 0.87 seems like the correct value.

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Wade

9 months ago

I believe it will be 0.80 because we spent more than planned.

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Val

10 months ago

I think the cost performance index will be 0.87.

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Jamika

11 months ago

Alright, let's do this! Budgeted Cost of Work Performed = 45% of $805,000 = $362,250. Actual Cost of Work Performed = $430,000. CPI = $362,250 / $430,000 = 0.84.

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Barrett

11 months ago

CPI = Budgeted Cost of Work Performed / Actual Cost of Work Performed. So we need to calculate those values first.

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Denny

11 months ago

Hold on, how did you arrive at that? I'm still trying to wrap my head around the formula for CPI.

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Katina

9 months ago

Yeah, the correct answer is D) 0.84.

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Frank

9 months ago

So, CPI = $362,250 / $430,000 which equals 0.84.

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Nancey

9 months ago

And the actual cost is $430,000.

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Jaime

9 months ago

We know the earned value is $805,000 * 0.45 which is $362,250.

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Frank

9 months ago

So for this project, we need to use the formula CIP = EV / AC.

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Katina

10 months ago

To calculate CPI, you divide the earned value by the actual cost.

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Daniel

11 months ago

I'm leaning towards option C, 0.86. That seems to make the most sense based on the information provided.

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Naomi

11 months ago

Okay, let's think this through step-by-step. We've got the budget, the percentage of work completed, and the actual amount spent. Shouldn't be too hard to figure out the cost performance index.

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Ilda

11 months ago

Wow, this question seems tricky! I'm not sure I'm fully prepared for this kind of calculation in the exam.

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