Which of the following statements is correct in regards to life-cycle costing? 1. It analyses the process of evaluating product profitability. 2. It helps planners to control costs more effectively.

Only 1
Only 2
Both 1 and 2
Neither 1 nor 2

The correct answer is C. Both 1 and 2.

Life-cycle costing (LCC) is a systematic approach to estimating the total cost of ownership (TCO) of a product or system over its entire life cycle. It includes all costs associated with the product or system, from research and development to manufacturing, operation, maintenance, and disposal.

LCC can be used to compare different products or systems, or to make decisions about how to improve the TCO of a product or system. It can also be used to identify and control costs more effectively.

Option 1 is correct because LCC does analyze the process of evaluating product profitability. LCC takes into account all costs associated with a product or system, including both direct and indirect costs. This allows decision-makers to make more informed decisions about whether or not to develop or purchase a product or system.

Option 2 is also correct because LCC helps planners to control costs more effectively. By identifying all costs associated with a product or system, LCC can help planners to identify areas where costs can be reduced. This can lead to lower TCO and increased profitability.

Therefore, both options 1 and 2 are correct.