Applied Performance Tests (APT) are defined as instruments designed to measure performance in an actual or simulated setting. They require at least a close approximation of the setting (if not the actual setting) to which the performance is expected to be transferred. This paper outlines measurement problems and issues that are unique to APT. It is argued that the problems and issues that are widely discussed for criterion referenced tests are also appropriate to APT. A brief history of APT is given. A listing of reliability and validity problems unique to APT is presented and discussed. Two additional measurement problem areas in APT are their objectivity and the generalizability of their results. Other measurement related considerations that may be regarded as problems in APT include cost, difficulty of application and development, and unavailability of norms for test interpretation. Finally, research and development steps to address the shortcomings of APT in elementary and secondary education are listed. (RC)