Intended as a guide in the development of a sound evaluation program utilizing both instructor-produced and standardized tests, this booklet presents a practical, understandable rationale for the development and use of both kinds of testing in the educational setting. Section I discusses the functions of measurement, offering a rationale for assessing the potentialities and achievements of students. Section II addresses the question of the purpose of measurement, arguing that the major decision regarding a college's testing program is determining what to measure. Section III provides instructors, counselors, and administrators with a review of some of the generally accepted assessment devices for aptitude and achievement that are in general use in the schools. Section IV focuses on the development of the classroom test, including information on test organization and individual differences in organization. Section V covers practical considerations in testing, such as the consistency of testing and the appropriate time for testing. Section VI discusses problems in measurement, while section VII considers the selection of test items and types of items (i.e., multiple choice, matching, true-false, and essay). Section VIII discusses the principles for developing test items offering examples of good and poor items of each type. Section IX covers organizational components of classroom tests, including format, arrangement and ordering, correct response distribution, scoring, directions, correcting for guessing, and pretesting. Selected sample tests and a glossary are attached. (JMC)