Practical capacity

Practical capacity is the level of capacity that reduces theoretical capacity by unavoidable operating interruptions such as scheduled maintenance time, shutdowns for holidays, and so on.

Definitions

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

Practical capacity. The level of capacity that reduces theoretical capacity by unavoidable operating interruptions such as scheduled maintenance time, shutdowns for holidays, and so on.