This chapter describes the components inside the system unit of a personal computer. It discusses the central processing unit (CPU) and its main components - the control unit and arithmetic logic unit (ALU). The CPU uses a machine cycle of fetch, decode, execute, and store steps to process instructions. Processor speed is measured in megahertz and gigahertz. Common components inside the system unit include the motherboard, memory modules, expansion cards, and ports. The chapter also covers data representation using binary numbers and bytes.