TOPIC: Management Reserves

Based on PMBOK, Management Reserves are not included in the cost baselines but is part of the overall budget and funding requirements.
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Question from PM PrepCast Simulator
The total authorized budget for your IT project is $160,000 and management reserves is $20,000. You want to measure cost performance to see how the project is doing. In this context, the cost performance is against measured which of the following budget amounts?
Answer is $140,000

Is the subtraction of MR because it's part of the authorized budget.

Thank you.

Kristin

That is correct. The key phrase to look at in this is the "Total Budget" I too got confused on this early in my studies.

Good Luck!