CAPM Practice: Determine how to document project controls of predictive, plan-based projects
Question 25 of 85 in Determine how to document project controls of predictive, plan-based projects
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Correct answer: The efficiency needed for remaining work to meet a target (BAC or EAC)
Explanation
TCPI = (BAC - EV) / (BAC - AC). It calculates the required cost performance efficiency for the remaining work to finish within the original budget (BAC). If TCPI > 1.0, the remaining work must be completed more efficiently than the project has performed to date — often indicating a significant challenge in recovering to budget.
**Why not A:** The current rate of spending versus planned spending describes Cost Performance Index (CPI = EV/AC) or basic budget tracking, not TCPI. TCPI is forward-looking, measuring what efficiency is needed for remaining work, not what has been achieved to date.
**Why not B:** Schedule performance needed to complete on time would be a schedule-focused metric. TCPI is strictly a cost efficiency measure — it calculates the cost performance rate required for remaining work, not the schedule performance needed.
**Why not C:** The ratio of work completed to total planned work describes percent complete or a progress metric. TCPI does not measure how much work is done; it measures the cost efficiency required for the remaining work to meet a budget target.
Key Concept
This question covers Determine how to document project controls of predictive, plan-based projects under Determine how to document project controls of predictive, plan-based projects (Predictive, Plan-Based Methodologies).
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