CAPM Exam Prep 41, Determine Budget — Baselines and Reserves

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The cost baseline is a time-phased budget that includes activity cost estimates plus contingency reserves. - Contingency reserves are for identified risks, or "known-unknowns," and are controlled by the Project Manager. - Management reserves are for unidentified risks, or "unknown-unknowns," and are controlled by senior management, not the PM. - A critical exam trap is knowing that management reserves are NOT part of the cost baseline but are part of the total project budget. - The total project budget is calculated by adding the management reserve to the cost baseline. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep