Which of the following is an example of a periodic expense?

Periodic expenses are costs that are not incurred regularly but occur at specific times throughout the year, usually on a less frequent basis. Property taxes are a prime example of a periodic expense because they are typically paid annually or semi-annually rather than monthly. This means that their payment schedule does not align with regular monthly expenses, such as utility bills or grocery shopping, which tend to occur on a consistent, recurring basis.

Utility bills can fluctuate, but they are usually paid monthly, making them a regular expense. Grocery shopping typically happens on a weekly or monthly basis, depending on an individual’s purchasing habits, marking it as a consistent expense rather than a periodic one. Transportation costs, while they may vary, generally include ongoing costs like fuel or public transport fares that occur regularly each month.

Thus, property taxes stand out as an expense that can significantly impact a budget but is incurred in a periodic manner, distinguishing it from more regular financial commitments.