Final answer:
The accounting representations of the actual flow of costs through a production system involve concepts such as total cost and the short-run average cost curve. Another representation is the accounting profit, which is calculated by subtracting explicit costs from revenue.
Step-by-step explanation:
The accounting representations of the actual flow of costs through a production system can be seen through the use of various cost figures and concepts. One such representation is the total cost, which is the sum of fixed and variable costs of production. This shows the overall expenses incurred in the production process. Another representation is the short-run average cost (SRAC) curve, which shows the total of average fixed costs and average variable costs. This curve helps analyze the cost efficiency of producing different quantities of output.
Additionally, the accounting profit can be calculated by subtracting the explicit costs from the revenue. This represents the monetary gain after considering all the costs. For example, if a company's revenue is $200,000 and its explicit costs are $85,000, the accounting profit would be $115,000.