What defines a recurring expense?

A recurring expense is defined as costs that occur regularly, usually on a consistent schedule such as monthly or annually. This type of expense is predictable and helps individuals and businesses budget effectively, as these costs are expected at specific intervals. Examples include rent, utility bills, and subscription services, all of which recur over time.

The other options do not accurately describe recurring expenses. Costs that occur once a year do not fit the definition of being recurring in a more frequent context and may not be considered regular. Costs that vary from month to month are typically classified as variable expenses rather than recurring ones since their irregularity deviates from the definition of being regular. Unexpected large payments are generally categorized as one-time or emergency expenses and do not have a regular occurrence, making them distinctly different from recurring expenses.