The General Accounting Office (GAO), at the request of the House Committee on Education and Labor, Subcommittee on Elementary, Secondary, and Vocational Education, conducted studies on the extent and cost of testing in the United States, the experience of Canada in testing, and initial efforts to set standards for judging student performance on the National Assessment of Educational Progress (NAEP). Main findings and conclusions from the first two studies are presented. A survey of all states and a national sample of school districts has suggested that U.S. students do not seem to be overtested, spending about seven hours a year in testing (including preparation and related activities). Nationally, systemwide testing in 1990-91 cost about $516 million. A national performance test could be expected to cost about $330 million. Regional state clusters of performance tests, as recommended by the National Council on Educational Standards and Testing would add about $193 million to current costs, with 25 minutes additional testing time. The Canadian testing system features a coordinated set of standards, course specifications, and tests that are well regarded by both educators and the public. In reviewing general questions of testing policy, the importance of teacher and administrator involvement is emphasized. Another major issue is that of ensuring the technical quality of any tests in a national system. (SLD)