# Question: How Do You Interpret Cost Performance Index?

## What is a good cost performance index?

Understanding the Cost Performance Index If the result is more than 1, as in 1.25, then the project is under budget, which is the best result.

A CPI of 1 means the project is on budget, which is also a good result.

A CPI of less than 1 means the project is over budget..

## What does a CPI of .78 mean?

A Cost Performance Index (CPI) of 0.89 means that the total budget is 89 cents to every financed dollar.

## What is the meaning of an index of 1.00 on SPI?

SPI = 1.00 You’re getting an hour’s worth of work for every hour you put into the project.

## What is a good schedule performance index?

If the ratio has a value higher than 1 this indicates the project is progressing well against the schedule. If the SPI is 1, then the project is progressing exactly as planned. If the SPI is less than 1 then the project is running behind schedule.

## What is the purpose of a cost performance index CPI?

The cost performance index (CPI) is a measure of the financial effectiveness and efficiency of a project. It represents the amount of completed work for every unit of cost spent. As a ratio it is calculated by dividing the budgeted cost of work completed, or earned value, by the actual cost of the work performed.

## What does CPI stand for?

Consumer Price IndexThe Consumer Price Index (CPI) is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services.

## What is SPI and CPI result?

SPI (Semester Performance Index) is calculated in every semester. Formula to calculate SPI is. CPI is calculated using credit of all subjects and Grade Achieved by Student in subject. What is CPI ? CPI Means Cumulative Performance Index.

## How do you read Cost Performance Index?

The cost performance index (CPI) is a measure of the conformance of the actual work completed (measured by its earned value) to the actual cost incurred: CPI = EV / AC. The schedule performance index (SPI) is a measure of the conformance of actual progress (earned value) to the planned progress: SPI = EV / PV.