In C programming, we organize code by putting function declarations in header files and function definitions in source files. The header file math_utils.h declares the function add. The source file math_utils.c defines add. The main.c file includes math_utils.h to know about add before calling it. We compile math_utils.c and main.c separately into object files, then link them to create the executable. This organization helps keep code modular and avoids errors. The variable 'result' stores the sum returned by add. Including headers ensures the compiler knows function signatures. Skipping header inclusion causes compiler errors. This step-by-step flow shows how header and source files work together to build a C program.