Glossary of Earned Value Management Terms

C

Subsections:

CV

see cost variance .

cost performance index (CPI)

the cost efficiency ratio of earned value to actual cost . CPI is often used to predict the magnitude of a possible cost overrun by using the following formula: $\frac{\mi{BAC}}{\mi{CPI}} =$ projected cost at completion. $\mi{CPI} = \frac{\mi{EV}}{\mi{AC}}$.

cost variance (CV)

the difference between the earned value of an activity and the actual cost of that activity; that is, $\mi{CV} = \mi{EV} - \mi{AC}$.

cost variance percentage (CV%)

cost variance relative to earned value: $\mi{CV\% } = \frac{\mi{CV}}{\mi{EV}}$.