Are you aware the PMBOK 7th Edition changed the definition of Project Budget and Cost Baseline?

Interesting point. I am surprised PMI didn’t respond to you. I suggest you use live chat and let them know you need to be connected with someone from Standards Department.

In general, Contingency Reserve is part of the Project Budget and Cost Baseline and it has always been the case while Management Reserve is not, at least this is what we still do when we establish project budgets. Not sure why the figure in 7th Edition shows that Contingency Reserve is not part of Cost Baseline. Maybe one of our colleagues here will be able to shed a light on this.

Thanks @Sachlani for bringing up such an interesting point.
Personally, I prefer the simple interpretation of the figure in the PMBOK7: BAC = Cost Baseline + Contengency Reserve.
I dont think that might be a problem during the exam intake, at the contrary they've made it look simpler.
I agree with @Rami, try using the live chat, they are quite responsive on it. Best of luck.

To me, it depends on how you define your baseline. Baselines are reference systems. There may be many simultaneous reference systems chosen for their utility and convenience at any given time.

In many years of studying and applying standards and practices from many industries, I have never encountered a standard "project baseline". Whether it is the PMBok, SEBoK, IEEE standards, or whatever source, "The Baseline" is not a fixed term. It is chosen based on the context of how the project is managed and the correct meaning can be debated ad nauseam.

Whether your "baseline" includes the known work, the known work plus some expected level of change, the total work including change plus contingency for some unknown events, or the budget provided to the performing organization based on financial goals rather than project performance, it is all a matter of perspective. That perspective can also differ greatly whether you look at a project, program, or a portfolio.

Aside from a passing exam score on one day of your life, the important thing is what are you trying to measure about your financial performance, and what is the most effective way to standardize your measurement system. From a practical perspective, I consider there to be 2 budget baselines of importance: the estimates for the known work (no contingency at all), and the estimate for the risks and opportunities. Those two eventually converge. I don't even know how much management has held in reserve just in case, so it has no bearing on my decision making.

I certainly appreciate the PMBoK inconsistencies. Managing lots of documentation is known for those issues. In practice, the right baseline is whatever makes the most sense to compare your performance to your plan.

To me, it depends on how you define your baseline. Baselines are reference systems. There may be many simultaneous reference systems chosen for their utility and convenience at any given time.

In many years of studying and applying standards and practices from many industries, I have never encountered a standard "project baseline". Whether it is the PMBok, SEBoK, IEEE standards, or whatever source, "The Baseline" is not a fixed term. It is chosen based on the context of how the project is managed and the correct meaning can be debated ad nauseam.

Whether your "baseline" includes the known work, the known work plus some expected level of change, the total work including change plus contingency for some unknown events, or the budget provided to the performing organization based on financial goals rather than project performance, it is all a matter of perspective. That perspective can also differ greatly whether you look at a project, program, or a portfolio.

Aside from a passing exam score on one day of your life, the important thing is what are you trying to measure about your financial performance, and what is the most effective way to standardize your measurement system. From a practical perspective, I consider there to be 2 budget baselines of importance: the estimates for the known work (no contingency at all), and the estimate for the risks and opportunities. Those two eventually converge. I don't even know how much management has held in reserve just in case, so it has no bearing on my decision making.

I certainly appreciate the PMBoK inconsistencies. Managing lots of documentation is known for those issues. In practice, the right baseline is whatever makes the most sense to compare your performance to your plan.