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This greatly depends on the system in question. The cost/performance analysis tells a project manager information about the status of the project in question at a given point of time. The relationship between the Cost Performance Index (CPI), Earned Value (EV), and AC (Actual Cost) can be expressed with the simple equation CPI = EV/AC. The EV consists of work actually completed, while the AC details the real cost of the budget.

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Brian Thomas

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