WEBVTT
Kind: captions
Language: en
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In this video, you will use formulas to calculate
whether your project is
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under, on, or over budget.
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This is commonly called the Net, or the difference
between the estimated and actual costs budgeted.
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This enables you to quickly view your project’s
financial status as it progresses.
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To start, fill in the actual cost column with
numbers.
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If this was a real project, you would adjust
the numbers in this column
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according to the project expenses.
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For the purpose of this exercise, enter any
numbers in the “actual cost” column.
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Some of the numbers should be higher than
the estimated cost for that line item,
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some should be lower than the estimate, and some
should be exactly the same.
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Format the numbers in the “actual cost”
column as currency.
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To determine the difference between the
estimated and actual costs
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for the first line item on your sheet, use a formula.
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A formula is a mathematical relationship expressed
in numbers, such as a subtraction problem.
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A formula prevents you from manually subtracting,
adding, or otherwise calculating
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a list of numbers, saving you time and limiting errors.
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The result of the formula appears in the “Net”
column.
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Formulas in Google Sheets always start with
an equals sign.
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After typing in an equals sign, enter your formula.
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In this case, you want to find out if
your actual costs
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are above or below your estimated costs.
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So, subtract the “actual cost” number
from the “estimated cost” number.
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The formula is cell C2 minus cell D2.
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When you hit enter, the formula subtracts
one number from the other.
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The number in the “Net” column represents
the difference between the estimated cost
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of the project line item
and what was actually spent.
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To copy this formula to the entire “Net”
column, click on the cell containing the formula.
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Then, grab the handle in the lower right-hand
corner of the cell, hold it, and drag it down
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the column until you reach the bottom of your
line item list.
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When you release the handle, a list of totals
appears in the Net column,
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some positive, some negative.
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Click into one of the cells to make sure the
formula copied as expected.
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Although spreadsheets are powerful tools,
you should always double-check your work.
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The formula copied itself down the column,
automatically updating cell references each
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time to indicate the correct cell.
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Finally, make sure the numbers in the “Net”
column are formatted as “currency.”
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Formatting your spreadsheet by adding specific
numerical categories, dates, or fonts
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allows you to customize its appearance and quality.
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Formatting also draws attention to specific
sections so they convey information more clearly.
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Now, it’s your turn:
Enter the Actual Costs
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for the items in your project,
using real or imagined numbers.
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Calculate the difference between the estimated
and actual costs using a subtraction formula.
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Copy the formula to the entire Net column.