Etymology
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acronym (n.)

word formed from the first letters of a series of words, 1943, American English coinage from acro- + -onym "name" (abstracted from homonym; ultimately from PIE root *no-men- "name"). With the exception of cabalistic esoterica and acrostic poetry, this way of forming words was exceedingly uncommon before 20c. For distinction of usage (regretfully ignored on this site), see initialism.

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Definitions of acronym

acronym (n.)
a word formed from the initial letters of the several words in the name and pronounced as one word;
the word `scuba' is an acronym for s(elf)-c(ontained) u(nderwater) b(reathing) a(pparatus)
Synonyms: initialism
From wordnet.princeton.edu