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The calculation for Cost Per Unit is a very works) and define the second parameter as C2.
About the easy formula to create and copy to other cells. The LAMBDA works.
author However, we are using a very simple formula in 3. Define the LAMBDA in the Name Manager:
this example so as not to distract from learning Copy just the LAMBDA without the cell refer-
Kelly L. Williams, about LAMBDA. The true power of the LAMBDA ences for that specific formula to create a custom
CPA, Ph.D., MBA, function will be realized by using it to recreate more function that can be used repeatedly, =LAMBDA
is an associate complex formulas. (TotalCost,Quantity,TotalCost/Quantity). Go
professor of Let’s now follow our steps listed above. to the Formulas tab and choose Define Name
accounting at the 1. Test the formula: In cell D2, I enter =B2/C2. Be- from the Defined Names group. Paste the
Jones College of cause this is a table, the Cost Per Unit populates copied LAMBDA into the Refers to: box. Enter
Business at Middle on every row and the formula works. the name that you want to call your new custom
Tennessee State 2. Create the LAMBDA in the spreadsheet: In function in the Name: box. I named mine
University. cell F2 (you can use any cell outside of your CostPerUnit. If you would like to add any com-
table), I create the LAMBDA. I enter =LAMBDA ments, you can add them in the Comment: box.
(TotalCost,Quantity,TotalCost/Quantity)(B2,C2). This is particularly useful if your parameters may
TotalCost is the first parameter, Quantity is the need more explanation.
second parameter, and TotalCost/Quantity is the See the screenshot below for the completed
calculation. We then define the first parameter New Name window for CostPerUnit.
as B2 (for this calculation only to make sure it

journalofaccountancy.com May 2022 | 39