What is the significance of using named ranges in a spreadsheet?

Using named ranges in a spreadsheet significantly enhances the readability and manageability of formulas. By substituting descriptive names for standard cell references, users can quickly understand the purpose of a particular range of data. For instance, instead of seeing a formula like "=SUM(A1:A10)", a named range could be used, turning it into "=SUM(SalesFigures)", which clearly indicates that the values being summed pertain to sales figures. This clarity helps not only the original author of the spreadsheet but also anyone else who might use or analyze the spreadsheet later on.

While the other options touch on related functionalities within spreadsheet software, they do not address the primary benefit of named ranges. Reducing file size, enabling restricted access, and protecting data are all important considerations in spreadsheet design, but they do not capture the essence of why named ranges are particularly valuable in improving users' interactions with formulas and data organization.