In batch processing, how are transactions handled?

In batch processing, transactions are handled by grouping similar input items together for processing at one time rather than processing each transaction individually. This approach allows for greater efficiency and reduced processing costs, as the system can process multiple transactions simultaneously.

By organizing transactions into batches, it minimizes the time and resources needed, enabling systems to execute processes in bulk rather than one at a time. This is especially beneficial in scenarios where the volume of transactions is high, such as payroll processing or end-of-day financial reporting.

The option indicating real-time processing describes a different method known as online or real-time processing, where transactions are handled immediately as they occur. Instant feedback is characteristic of that same method. The reference to manual processing does not align with the automated nature of batch processing and is more associated with legacy systems. Therefore, grouping similar input items for efficient processing is the key principle that highlights why this answer is correct.