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C › Cost Performance Index (CPI)

COV ITRM Glossary

Cost Performance Index (CPI)

Definition

A measure of cost efficiency on a project. It is the ratio of earned value (EV) to actual costs (AC). CPI = EV divided by AC. A value equal to or greater than one indicates a favorable condition and a value less than one indicates an unfavorable condition.


Reference:

PMBOK

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