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.

Full Definition

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