Fixed Differential is an accounting concept that helps companies understand their true costs and profitability. In short, it helps them manage their fixed costs and determine how much money they can make from a product or service. Fixed Differential is the actual difference between the total cost of producing a product or providing a service and the amount that is actually charged for it. Knowing this information helps companies understand their profitability, while also enabling them to make more informed decisions about pricing, marketing, and other business operations. It’s the key to running a successful business!