The CPU consists of the control unit and the arithmetic/logic unit (ALU). The control unit directs operations and communicates with memory and the ALU. The ALU performs arithmetic and logical operations. The CPU interacts closely with main memory (RAM) to access instructions and data. Secondary storage like hard disks hold permanent data. Registers are areas for temporary storage and processing. The CPU fetches instructions from memory, decodes them, directs data movement, executes operations with the ALU, and stores results - this is the machine cycle. Memory locations are identified by addresses to allow the CPU to access instructions and data as needed.