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Project Management & Agile · Intermediate

Project Budget

The total funds authorized for the project, consisting of the cost baseline plus management reserves.

Definition

Management reserve is held by management for unknown-unknowns and is not part of the baseline used for EVM.

Example

Cost baseline $900k plus $100k management reserve gives a $1M project budget.

Exam tip

Know the hierarchy: activity estimates, work packages, control accounts, cost baseline, project budget.

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