Differentiate between the terms "absolute cell referencing" and "relative cell referencing" in Microsoft Excel.

A cell reference identifies a cell used in an Excel formula. Relative and absolute references differ in what happens to that address when the formula is copied or filled to another location.

Basis	Relative reference	Absolute reference
Form	A1, B2, C5	$A$1, $B$2, $C$5
Behaviour when copied	Row and column adjust according to the new position	Row and column remain locked
Dollar sign	Not used	Placed before both the column letter and row number
Main use	Repeating the same calculation for different rows or columns	Reusing one fixed value, rate, limit or lookup range

Suppose B2 contains quantity and C2 contains unit price. In D2, the formula is:

=B2*C2

When it is copied down to D3, Excel changes it to =B3*C3. This is relative referencing: the relationship between the cells moves with the formula.

Now suppose the tax rate is stored once in F1. To calculate tax for every row, enter this in E2:

=D2*$F$1

When copied to E3, the formula becomes =D3*$F$1. The sales amount changes relatively, but $F$1 remains fixed. Pressing F4 while editing a reference cycles through relative, absolute and mixed forms.

A mixed reference locks only one part: $A1 locks column A while allowing the row to change, and A$1 locks row 1 while allowing the column to change. Thus, relative references support repeated calculations, while absolute references protect a constant address from adjustment.