The use of absolute or relative referencing can make copying formulas for use over large data sets on one or more worksheets very fast. For example, in my job we are constantly adding new products to our inventory. Those items needs to be added to my forecast calculations - so I need to quickly calculate total cost of goods and/or percentage increases/decreases. Using an absolute reference forone specific cell (ex. $B$3) allows me to copy and paste my formula using the drag tool to any new SKU numbers and the new formula will allows calculate against that specific cell (ex. $B$3).

Below is the formatting example for the referencing which can be achieved by using the F4 function button.

• B3 - Relative reference for cell B3 (column B and row 3). This means that any reference to this cell will change when a formula is copied to another cell.
• $B3 - Mixed reference (column B is absolute and row 3 is relative). This means that any reference to cell will keep column B the same and row 3 will change.
• $B$3 - Absolute reference (column B is absolute and row 3 is absolute). This means that any reference to this will not change if changed when copied.
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Why is this important to know? Please provide anexamples of where you would use absolute referencing in Excel?
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