Free PMP Exam Sample Question

The following PMP® exam sample question is taken from the Free PMP Exam Simulator at http://free.pm-exam-simulator.com - The answer is at the very bottom:

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The total authorized budget for your IT project is $160,000 and Management Reserves are $20,000. You want to measure cost performance to see how the project is doing. In this context, the cost performance is against measured which of the following budget amounts?

A.) $180,000
B.) $160,000
C.) $20,000
D.) $140,000

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Hint: The Cost Baseline includes all authorized budgets. The Cost Baseline is used to measure the Cost Performance of the project.

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ANSWER AND EXPLANATION:
The correct answer is B
Explanation: Cost Performance is measured against authorized budget. Management Reserves are not added to the Cost Performance Baseline and are not used for measuring cost performance.
Reference: PMBOK® Guide 4th Edition, page 174

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