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This video tutorial covers preprocessor commands like if def, else, and end if which are used for conditional compilation. These directives are used to skip parts of the source code based on conditions. An example is given using a floating point variable for the radius of a circle. A multi-line comment is introduced to explain the logic for calculating the area of the circle using the formula PI R square. Only a single line of code is needed to calculate the area of the circle, and the next step is to calculate the circumference.