Which metric compares the estimated cost of remaining work to the remaining budget?

Which metric compares the estimated cost of remaining work to the remaining budget?

• A. Burn rate
• B. To Complete Performance Index
• C. Cost Performance Index
• D. Usage variance

Answer: (B)

To Complete Performance Index is the metric that tells you what level of cost performance is required for the remaining work to stay within the remaining budget. It compares the estimated cost to complete (the Budget at Completion minus Earned Value) to the remaining budget (the Budget at Completion minus Actual Cost). The resulting ratio shows how efficiently you must perform from this point forward to finish within the original budget. If TCPI is above 1, finishing on budget will require more cost efficiency than has been achieved so far; if it equals 1, you must perform at the same cost efficiency rate; if it’s below 1, you can be less efficient and still meet the budget. Other metrics either describe current spending pace (burn rate) or cost efficiency to date (CPI), not the relationship between remaining work and remaining budget.

To Complete Performance Index is the metric that tells you what level of cost performance is required for the remaining work to stay within the remaining budget. It compares the estimated cost to complete (the Budget at Completion minus Earned Value) to the remaining budget (the Budget at Completion minus Actual Cost). The resulting ratio shows how efficiently you must perform from this point forward to finish within the original budget. If TCPI is above 1, finishing on budget will require more cost efficiency than has been achieved so far; if it equals 1, you must perform at the same cost efficiency rate; if it’s below 1, you can be less efficient and still meet the budget. Other metrics either describe current spending pace (burn rate) or cost efficiency to date (CPI), not the relationship between remaining work and remaining budget.