Identify all false statements about LIFO.

1. LIFO has higher recordkeeping costs because a firm has to keep many layers of inventory over many years.
2. Using LIFO for product pricing can make a firm more competitive due to its income tax saving.
3. LIFO ending inventory is understated resulting in distorted ratios, particularly inventory turnover.
4. Managers will get a higher bonus if the firm uses LIFO instead of FIFO.
5. LIFO cost of goods sold under perpetual system can be manipulated downward by substantial year-end purchases.