(d) Normal capacity refers to a range in production levels
that will vary based on business and industry-specific factors.
Normal capacity is the production expected to be achieved over a
number of periods or seasons under normal circumstances, taking
into account the loss of capacity resulting from planned maintenance.
Answer (a) is incorrect because the Codification does not
specify a formula for calculating normal capacity. Answers (b) and
(c) are incorrect because actual production may only be used if it
approximates normal capacity.