Reply: Management Reserves

Name
E-mail
Your e-mail address will never be displayed on the site.
Subject
Message

Topic History of : Management Reserves

Max. showing the last 6 posts - (Last post first)
3 years 8 months ago #8964

Kevin Nason

Kevin Nason's Avatar

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!
3 years 8 months ago #8912

KBG

KBG's Avatar

Based on PMBOK, Management Reserves are not included in the cost baselines but is part of the overall budget and funding requirements.
Page 206

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.

OSP INTERNATIONAL LLC
OSP INTERNATIONAL LLC
Training for Project Management Professional (PMP)®, PMI Agile Certified Practitioner (PMI-ACP)®, and Certified Associate in Project Management (CAPM)®

Login
Get PMP Exam Ready in Just Four Weeks! Join the Live PMP Blended Training Course Starting August 10. Click to learn more...