Within the data processing cycle, which is a function of the process step?

Introduction:
The classic data processing cycle includes input, processing, storage, and output, with controls and protection wrapping the life cycle. This question targets what belongs to processing proper.

Given Data / Assumptions:

• Processing transforms input into more useful information.
• Common functions: sort, classify, calculate, and update master data.
• Indexing and retrieval are typically storage or access functions.

Concept / Approach:
Processing involves applying business rules to change state, most notably updating transaction or master files. Retrieval and indexing are related to access paths and outputs. Protection is a control activity.

Step-by-Step Solution:
1) List typical processing actions: compute, validate, post, and update. 2) Map each option to its life-cycle area. 3) Recognize “update” as a transformation of data state.

Verification / Alternative check:
Any introductory MIS or database text places updating under processing functions that change content of stored records.

Why Other Options Are Wrong:
Option A: Index is an access structure, not a transformation step.
Option C: Protect is a control/security concern, not transformation.
Option D: Retrieval is output/access, not internal transformation.
Option E: Archive is long-term storage, not a processing step.

Common Pitfalls:
Equating retrieval with processing because it involves computation. Retrieval may use processing resources but does not change the data state.

Final Answer:
Update