Full form of ALU is Arithmetic Logic Unit.

The Arithmetic Logic Unit (ALU) of a computer system is the place where the actual execution of the instructions takes place during the processing operation.

All calculations and all comparisons are performed in ALU. The data and instructions, stored in the primary storage prior to processing are transferred as and when needed to ALU where processing takes place.

No processing is done in the primary storage unit; intermediate results generated in the ALU are temporarily transferred back to the primary storage until needed at a laser stage.

Data may just move from primary storage to ALU and back again to storage many times before the processing is over.

After the completion of processing, the final results which are stored in the storage unit are passed to output device.