cost performance index (CPI)

Definition

A measure of the efficiency of expenses spent on a project. The formula that a business normally uses to assess the cost performance index (CPI) is the ratio of earned value (EV) over actual costs (AC); therefore, CPI is equal to EV divided by AC. A value higher than one indicates a favorable condition, while a value under one would be considered unfavorable.

Related Videos




http://www.businessdictionary.com/definition/cost-performance-index-CPI.html

Have a question about this term? Ask for help in the
Community
advertise here

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z