Yes, there is clearly some confusion here. The "LC" in the 68LC040 CPU simply means it's lacking the onboard floating-point coprocessor of the "full" 68040; all Apple machines with 68040-family CPUs have 32 bit paths to RAM/ROM and at least *some* of the onboard peripherals. (The later LC-family desktops do indeed have a 16 bit bus translator in front of other parts of the board, like the expansion slot, for backwards compatibility with older models.) This has nothing directly to do with "LC" as used by Apple, and of the Apple machines only the original LC and LCII have a 16 bit bus running "all the way to the CPU"; the LCIII and later are fully 32 bit machines, again, so far as RAM and ROM go.
For tasks that don't involve the FPU a 68040 and 68LC040 running at the same CPU clock will benchmark identically; swapping out the CPU does *not* double the width of the bus. As to how using the 16 bit bus "saved money" in the original LC/LCII, well... it's actually sort of debatable whether it really did. Using a narrower bus does let you get away with a little less glue logic and makes for a slightly more compact board but unlike the case of, say, the Intel 386SX, which was bus-compatible with the 80286 and allowed vendors to upgrade old designs to a "386" with just a chip swap, the Mac LCs were a complete new build for Apple and used the same CPU as a full 32 bit implementation. (The CPU itself has built-in support for the narrower bus, in part to facilitate upgrades from 68000/68010 designs, but it requires more work than a 286->386SX swap.) It probably saved a *few* bucks but I'm 80%-ish sure it was mostly a marketing decision to make sure that LCs performed enough slower than a "real" Mac II-family machine to clearly differentiate the two.(*)
(* I do vaguely recall reading that early prototypes of the LC were meant to be powered by the 68000 and this was changed to avoid having to make a 68000-compatible port Color Quickdraw, but I don't know how true that is. The memory map of the LC/LCII looks more like a Mac II family machine than most 68000-powered compacts but the Macintosh Portable, which is also 68000, sort of looks like a Mac II stuck in 24 bit addressing mode so it's certainly *possible*. If it were true and the ASICs for the LC were originally targeted at the 68000 that does provide a technical justification for the narrow bus.)