Consider $\phi: (A^B)^C \to A^{B \times C}$ given by $\phi(f)(b,c) = f(b)(c)$.
I'm trying to understand the definition of $\phi$ as given above. Suppose $k \in A^B$. Then $k: B \to A.$ Now let $f \in (A^B)^C $. Then $f: C \to \{k\}$ meaning $f(c) = k_i$ for some $i$ and so $f(c)$ is a function and not just a value. Thus the notation $f(c)(b)$ makes sense...but I still can't make sense of what's going on with the definition of $\phi.$ What's the reasoning behind this definition if it's an acceptable question? Thanks.
Let's write out what everything is. Part of this you already did in the question itself.
The point is that there is a natural bijection between $(A^B)^C$ and $A^{B \times C}$, and this is the map $\phi$ from your post. So $\phi$ is a function $\phi: (A^B)^C \to A^{B \times C}$. Thus given an element $f \in (A^B)^C$ we must produce an element $\phi(f) \in A^{B \times C}$, so $\phi(f)$ must be a function $B \times C \to A$. This function is defined by sending a pair $(b, c) \in B \times C$ to the value $f(c)(b)$ (this is also where there is a typo in your question, you wrote "$f(b)(c)$"). So notationally: $$ \phi(f)(b, c) = f(c)(b). $$
This correspondence is known as Currying. In words we can describe what happens as follows. For a function $f: C \to A^B$ we can turn it into a function $h: B \times C \to A$ by first evaluating $f$ at $C$, and then using that result and evaluating it at $B$. The inverse of this correspondence then goes as follows. If we are given $h: B \times C \to A$, then given some $c \in C$ we can turn it into a function $B \to A$ by fixing that $c$. That is, we get $h(-, c): B \to A$, which sends $b$ to $h(b, c) \in A$.