A project's control account estimates total $450,000. In addition, the project manager identifies $50,000 in contingency reserves for known risks and management approves $40,000 in management reserves for unknown risks. What is the project's cost baseline?

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Accepted Answer

$500,000. The cost baseline = work package/control account costs + contingency reserves = 450,000 + 50,000 = $500,000. Management reserves are NOT part of the cost baseline; adding them gives the total project budget of $540,000, which is a common error.

A project's control account estimates total $450,000. In addition, the project manager identifies $50,000 in contingency reserves for known risks and management approves $40,000 in management reserves for unknown risks. What is the project's cost baseline?

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