Question

You have been managing the development project for six months. Upon recent evaluation, you determine that the TCPI is 1.27. Which statement is most accurate?

1) The project is 27
2) The project needs to be 27
3) The project is 27
4) The project is using the resources 27

Answer 1

Option 2 is correct.A TCPI of 1.27 indicates that the project needs to be 27% more efficient to complete the work within the budget. The correct statement is that it needs a 27% efficiency increase to meet financial goals.

Step-by-step explanation:

When managing a development project, the To-Complete Performance Index (TCPI) provides a forecast of the cost performance that is required to achieve a target, such as completing the project within the approved budget. A TCPI of 1.27 means that the project needs to increase its efficiency by 27% to stay within budget. Therefore, the most accurate statement from the options is: "2) The project needs to be 27% more efficient to complete the work within the approved budget". It indicates that the project team must improve their cost performance by 27% in the remaining period of the project to meet the financial objectives set forth in the plan.