The component of a computer responsible for temporary data storage during processing is the Random Access Memory (RAM). RAM stores data that the CPU needs to access quickly while executing tasks. It allows for fast read and write operations, enabling efficient execution of applications and processes. Unlike permanent storage solutions such as hard drives, the data in RAM is volatile and lost when the computer is powered off. High RAM capacity enhances performance by allowing more applications to run simultaneously and facilitates smoother multitasking, critical for today’s demanding software environments.