When using an absolute reference in a formula or function, it is best practice to create a labelled reference area.

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BlackTom AI · Accepted Answer

The statement asserts that when you use an absolute reference in a formula or function, it is best practice to create a labelled reference area.

Why this can be considered true: using labelled reference areas, or named ranges, generally improves clarity. Instead of seeing a raw absolute reference like $A$1, a named range such as tax_rate conveys meaning, making formulas easier to read and review. This labeling can also help reduce errors when formulas are copied or moved, because the name remains tied to a meaningful value or range rather than to a potentially shifting cell address.

Additionally, named ranges can be configured to refer to fixed values or blocks of cells, which aligns well with the concept of absolute references that you want to remain constant regardless of where the formula is used. In many spreadsheet best-practice guidelines, using labels for key inputs is recommended to improve maintainability and auditing of the worksheet.

Why this statement might be questioned in other contexts: some might argue that absolute references and named ranges are separate concepts, and that you can rely on absolute references without creating named areas. However, the broader best practice in many practical settings is to label important references so that formulas convey meaning beyond mere cell coordinates, especially when you intend those references to stay fixed.

In summary, embracing labelled reference areas for formulas that use absolute references aligns with clarity, error reduction, and maintainability goals, supporting the view that this is best practice.

FNDN Computing for Business 2024 STD E2

When using an absolute reference in a formula or function, it is best practice to create a labelled reference area.

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