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A two-year project with a budget of US$2 million has completed about 60% of the...

A two-year project with a budget of US$2 million has completed about 60% of the work at the end of the first year. The actual cost incurred to complete the remaining 40% of work is about USS1.5 million. As a part of performing a specialized risk analysis, the calculated schedule performance index (SPI) is 1.2 and cost performance index (CPI) is 0.53.

How should the risk manager interpret such a low CPI value?

A.

The cost control processes is ineffective.

B.

The cost baseline is inaccurate.

C.

The actual reported costs are inaccurate.

D.

The cost related risks are effectively managed.

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