What type of formatting can be customized based on workbook variable values?

The correct answer is conditional formatting. This type of formatting allows you to change the appearance of cells in a workbook based on specific conditions or values that are derived from workbook variables. For example, you can set rules to display certain colors, fonts, or styles when a cell meets a predetermined criterion, such as exceeding a certain value, being equal to another variable, or falling within a defined range.

This dynamic approach is beneficial for quickly highlighting important data trends, anomalies, or task statuses within a report or dashboard, making it easier for users to interpret the information at a glance. Conditional formatting enhances data visualization and can significantly improve decision-making by drawing attention to critical data points.

In contrast, static formatting refers to fixed styles applied to cells that do not change regardless of the data values. Color coding can be a method of presentation but does not inherently allow for the customization based on dynamic workbook variables. Default formatting generally refers to the styles and formats applied to a spreadsheet before any specific customizations are made, lacking the responsiveness that conditional formatting offers.