This synthesis of research on alternative assessment methods in teacher education reviews literature on performance assessment, describing the various types of assessment discussed by M. Priestley (1982), including: (1) actual performance assessments (work-sample tests, identification tests, supervisor ratings, peer ratings, and self-assessments); (2) simulations (simulated performance tests, simulated identification tests, written simulations, and management exercises); (3) observational assessments (checklists, rating scales, and anecdotal records); and (4) oral assessment (oral examinations, interviews, and prepared presentations). The major problems identified in the use of performance-based assessments are those of time and cost. Some concern has been expressed that the domain covered by performance tests may be even more narrow than that assessed by multiple-choice tests. Many educators and researchers see the best assessment approach as the use of alternative assessments in conjunction with standardized multiple-choice tests. (Contains 38 references.) (SLD)