prorate

prorate definition - business

prorate

To allocate something such as cost among two or more parties. For example, when a home is sold, the electric bill during the month of sale may be prorated between the buyer and seller, depending on the number of days each occupied the home during the month.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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