Define: Annualization

UK Accounting Glossary

Definition: Annualization


Quick Summary


Annualization is a tool which is used to predict the annual amount of something using only the data from part of the year.



What is the dictionary definition of Annualization?

Dictionary Definition


A procedure that is used in the USA whereby you multiply the taxable earnings of a month by 12 then divide it by the number of months involved to provide a monthly amount. Annualization as a procedure is specified by the Internal Revenue Code.


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