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In this tutorial, Kevin demonstrates how to create multiple dependent drop-down lists in Microsoft Excel. He explains that this feature helps prevent data entry errors by allowing users to select options from a first drop-down list that then determines the available choices in subsequent lists. This is particularly useful for organizations, like the example he gives of order logging at the Kevin Cookie Company, where accuracy in data entry is essential. He also mentions that a sample file is available in the video description for viewers to follow along.