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Cost performance index is measure of the cost efficiency

Cost performance index is measure of the cost efficiency

Cost performance index is measure of the cost efficiency

1. The cost performance index (CPI) is a measure of the cost efficiency with which the project is being performed. If the cumulative earned value is greater than the cumulative actual costs, then

the CPI is greater than 1.0.

the CPI is less than 1.0.

CPI cannot be determined with CEV and CAC.

the CPI is negative.

2. DAK Corporation had kept all its hiring plans on hold during the last four quarters because the economy was in a state of recession. DAK manufactures oil filters, air filters, and spark plugs for several major auto manufacturers. The company is analyzing market trends in order to reassess its hiring strategy for the coming year. Which of the following, if true, would best support the argument for restarting hiring?

A) The previous recession had only lasted a year.

B) Though there was a decline in profits compared to the previous year, the company recently reported the best numbers in its industry.

C) Auto manufacturers have aggressively started hiring more staff.

D) One of DAK’s fiercest rivals has started laying off its employees.

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