Choice "C" is correct. The annual business plan process typically begins with operating budgets that are driven by sales budgets that, in turn, provide the required variables for production, selling and personnel budgets. Financial budgets including pro forma financial statements and cash budgets come at the end of the process and are prepared last. Cash budgets are typically derived from the operating budgets that assume accrual basis assumptions (e.g., credit sales and credit purchases).Choice "d" is incorrect. Capital budgets would be developed as part of a business's strategic planning process and would precede the development of cash budgets derived from operating budgets.Choice "b" is incorrect. The annual business plan process is comprised of the development of operating budgets followed by financial budgets. The cost of goods sold budget is an operating budget that is driven by the purchases and sales budgets. The operating budgets precede the financial budgets that include the cash budget.Choice "a" is incorrect. The annual business plan process is comprised of the development of operating budgets followed by financial budgets. The marketing (selling and administration) budget is an operating budget that precedes the financial budgets that include the cash budget.