The use of standardized tests for outcome assessment has grown dramatically in recent years. Two driving factors have been the No Child Left Behind legislation, and the increase in outcome assessment measures by accrediting agencies such as AACSB, the international accrediting body for business schools. Despite the growth in usage, little effort has been expended on examining the testing procedures, and evaluating the usefulness of such testing. This paper focuses specifically on ETS testing, and examines the testing procedure, results, and potential usefulness of the test. The paper indicates that the ETS outcome assessment methodology may not be optimal. The paper also suggests a possible alternative methodology for outcome assessment.