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Default definition of a formula and function?

i tried doing a search for this but am still unclear. if i have the
following for example:
=sum(A1+A2)

is SUM the function and (A1+A2) the formula? or is that too
simplistic.


Also, regarding variables if i have a list of, say, pupil data and a
convert this into a percentage is the pupil data INPUT variable and
the percentage(s) OUTPUT variable? again, is that too simplistic a way
of looking at things. thanks all.

 
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