Question

What is the basis of using an absolute address?

Answer 1

• Fixed Cell Location: Excel locks onto the exact coordinates of a cell, completely ignoring where the formula is copied or dragged.
• Constant Variable Principle: It assumes that certain key values (like a tax rate or interest rate) apply uniformly to all rows and must never change.
• No Shifting: It overrides Excel’s default behaviour, preventing row numbers or column letters from moving when using AutoFill.
• Formula Integrity: It maintains a permanent link to a single source cell, ensuring complex financial schedules or lookup tables do not break or shift.