Management reserves are not included in the cost or schedule baseline and are established to deal with unforeseen work. While management reserves are part of the project budget or duration, they are excluded from the baselines. Contingency reserves differ in that they are estimated for identified risks and can be allocated at the activity level. The document provides a sample exam question and answer regarding the distinction between management reserves and contingency reserves in project management.

1. CAMP Exam
Sample Q & A

2. IWhich of the following is true about management reserves?
A. Management reserves are associated with the "known-unknowns."
B. Management reserves are not included in the cost or schedule baseline.
C. Management reserves are estimated for identified risks.
D. Management reserves are estimated at the activity level.
HINT: Distinguish between management reserves and contingency reserves
QUESTION:

3. The correct answer is B.
Management reserves are established for management control purposes to deal with
unforeseen work. Although it is part of the project duration or budget, it is not included in
the baselines. Another way to look at it is that budget is the cost baseline plus
management cost reserves and project direction is schedule baseline plus management
duration reserve. Contingency reserves are reserves held to respond to identified risks and
can be estimated at the project activity level.
ANSWER:

4. All our questions are updated to the latest A Guide to the Project Management Body of Knowledge
(PMBOK® Guide) standard.
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