A good applied performance test (APT) concentrates on measurable objectives which are relevant for today's society in general, for the local community, and for the students. APTs should be valid, objective/reliable, straightforward in format, simple to understand, and able to maintain student interest. Scoring procedures should be standardized and objective, and administrative procedures should be efficient. The development of APTs generally involves eleven steps: (1) analyze content and objectives; (2) survey school and community; (3) decide on content; (4) analyze the task; (5) choose the testing situation; (6) develop directions; (7) develop scoring standards; (8) administer the test to a sample; (9) revise; (10) re-administer the test; and (11) determine its generalizability. Additional information about APTs may be obtained from teachers who have already developed tests, from the Clearinghouse on Applied Performance Testing (CAPT), from testing organizations such as Educational Testing Service, and from regional CAPT Materials Collection Centers. Selection of an APT from an outside source should be based upon the test's relevance to curriculum goals and objectives, as well as its technical qualities (such as reliability, validity, discrimination, format, relevance, scoring, and quality of instructions). (Six discussion questions and 24 bibliographic references are appended). (GDC)