👉 Prorating is a process in accounting where an amount of money or resources is divided between two or more recipients based on their relative contributions to a project, program, or budget. This principle ensures that each recipient receives a fair share of the total effort and resources involved in achieving the overall goal. For example: - A company may divide its profit evenly among all employees. - A charity may distribute donations equally among supporters of its programs. - A school district divides its educational expenses among students, teachers
