What is the First in, first out (FIFO) rule?

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The first in, first out (FIFO) rule is a method of stock valuation used in Sage 50 Accounts and assumes that the first stock you purchase is also the first stock you sell.

For example, if you buy ten items at £10.00 and then another ten at £12.00, when sold, the first ten at £10.00 are sold first, followed by the ten at £12.00.