Final answer:
The statement in the question is True. Excel starts with the outermost function and then moves inward when a formula contains several nested functions.
Step-by-step explanation:
The statement in the question is True. When a formula contains several nested functions, Excel does start with the outermost function and then moves inward. This is known as the order of operations in Excel. Excel follows the same order of operations as in mathematics, which is commonly known as PEMDAS (Parentheses, Exponents, Multiplication and Division, and Addition and Subtraction).
For example, if we have a formula like =SUM(AVERAGE(A1:A5), MAX(B1:B5)), Excel will first calculate the average of the range A1:A5, then find the maximum value in the range B1:B5, and finally, calculate the sum of those two results.