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.