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1. CAPM Exam
Sample Q & A
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2. Which 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 an amount of project duration
reserved for management control purposes. Management
reserves are included in the overall project duration estimates
and the project budget. They are not included in the schedule
or cost baseline.
ANSWER:

4. 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:

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