What does CPI mean?

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    Nav Singh
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    What does CPI mean?
    The result of the Cost Performance Index formula is a number. So what does this number mean?

    A value of less than one means that money is being spent inefficiently on the project. So if your CPI is 0.7, this means that for every $1 spent on the project you are getting $0.70 of value.

    A CPI of one means that your project is exactly on track. You spent $1 on the project and got $1 of value in return.

    And a value of greater than one means that money is being spent efficiently on the project. So if your CPI is 1.4, this means that for every $1 spent on the project you are getting $1.40 of value.

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