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Please find below the next PMP exam like question based on the new exam content outline(2021).
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PMP Exam Question – 2021
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The correct answer is C.
The total project budget includes the cost baseline plus the management reserves. Therefore, the difference between the two is the management reserves. Withheld for management control purposes, management reserves are used for unforeseen risks that affect the project. The cost baseline includes the work package estimates plus contingency reserves. The project manager can use contingency reserves for identified risks should they occur.