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TOPIC: Management Reserves

Management Reserves 7 years 7 months ago #8912

  • KBG
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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.

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Management Reserves 7 years 7 months ago #8964

  • Kevin Nason
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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!
The following user(s) said Thank You: KBG
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