What is the algorithm used for "compute normals for point sets"?

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What is the algorithm used for "compute normals for point sets"?

The only reference I can find is https://sourceforge.net/p/meshlab/discussion/499533/thread/0e8481e8/. But this was 10 years ago, and it is also a bit vague about the actual algorithm.

Here's what I think:

• Since it mentions nearest neighbors, I assume it uses kNN and locally fit a plane using PCA?
• I am not sure what "smoothing iterations" means, but I guess it's to average neighboring normals.

Can anyone confirm this? Thanks!