This report was developed in the Test Use Project at the Center for the Study of Evaluation. The general goal of the project is to examine and describe the features and applications of tests and other assessment methods that contribute to the improvement of instruction. It is, therefore, examining the nature of current assessment practice, the kinds of information such practice yields, the factors influencing the use of the information, the kinds of uses made, and the costs associated with assessment. The first phase of the project (December 1979 to November 1981) consists primarily of a national survey of teachers and principals on the kind of issues suggested above. The design of the phase 1 national survey has been influenced by a variety of project planning activities. This report deals with one of these activities--a review of the literature on test use. This document integrates the literature reviewed and is intended to be selective rather than exhaustive. The focus is on: (1) the nature of current testing practices; (2) factors influencing the use of test results; and (3) costs associated with testing. (Author/GK)