Normal capacity utilization

Normal capacity utilization is the level of capacity utilization that satisfies average customer demand over a period (say, two to three years) that includes seasonal, cyclical, and trend factors.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Normal capacity utilization. The level of capacity utilization that satisfies average customer demand over a period (say, two to three years) that includes seasonal, cyclical, and trend factors.