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Task 5: Plan and manage budget and resourcesearned value managementTCPI calculationcost performancebudget management

PMP · Question 69 · Task 5: Plan and manage budget and resources

A project has the following earned value data:<br/>- Budget at Completion (BAC): $500,000<br/>- Earned Value (EV): $200,000<br/>- Actual Cost (AC): $250,000<br/>- Current CPI: 0.80<br/><br/>Calculate the To-Complete Performance Index (TCPI) based on the Budget at Completion. Round to two decimal places and enter numbers only (e.g., 1.25).

How to approach this question

Use the TCPI formula: TCPI = (BAC - EV) / (BAC - AC). Substitute the values and calculate to two decimal places.

Full Answer

TCPI = (BAC - EV) / (BAC - AC) = ($500,000 - $200,000) / ($500,000 - $250,000) = $300,000 / $250,000 = 1.20

Common mistakes

Using the wrong TCPI formula or confusing it with other earned value calculations like CPI or EAC formulas.

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