Earned Value Definitions
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Cost Performance Index (CPI)

What is Cost Performance Index (CPI)? Earned Value Management explained.

Definition: 

Cost Performance Index (CPI) measures the cost efficiency of the project by comparing the earned value (EV) to the actual cost (AC) incurred. A CPI value greater than 1 indicates cost efficiency, while a value less than 1 suggests cost overruns. CPI helps in evaluating cost control measures.

Calculation: CPI = EV / AC

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