Question: You are the PM for a website development project. The total project budget is USD 12000 which INCLUDES management reserve of 2000. As of today, you are done with 50% of the project. What is the project's earned value?

I find the statement 'Management reserves are not part of the cost baseline, but may be included in the total budget for the project. They are not inluded as part of the EVM calculations' pretty contradictory.

So in my example above, should my BAC be 10000 or 12000?

(EV = 12000 * 50/100) OR

(EV = 10000 * 50/100)