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Understanding the relationships between the cells and your formulas allows you to better diagnose return errors, circular references, and even follow the logic used in files that are shared with you. With Excels Trace Precedents and Trace Dependents features, you can quickly follow the breadcrumbs and identify the impact on and from your formulas throughout a worksheet. Lets first look at the Trace Precedents feature. Precedents are cells that have a direct impact on the outcome of your formula. So, as the precedents change in value, so does the active cell. Heres an example worksheet with hardcoded values and formulas that rely on those values. Ive got a drop-down list in cell I2 that takes an employee name and calculates the average cost of each unit sold for that employee. If I were to select cell I3, you can see the formula bar populates with the Excel logic used to return a value. But instead of trying to decipher what its doing, we can go to the F