Itemization is the process of breaking down a larger amount into individual components or items. This method is commonly used in financial statements, invoices, and budgets to provide clarity and transparency. By listing each item separately, it becomes easier to understand the total cost or value, making it simpler for individuals or organizations to track expenses and manage finances. In accounting, itemization helps in identifying specific costs associated with a project or service. For example, a contractor may itemize materials, labor, and overhead costs in a bill to give clients a detailed view of what they are paying for. This practice promotes accountability and can aid in dispute resolution.