Phase I of the Test Use Project, begun in 1979, was directed at gaining a representative picture of achievement testing in the nation's public schools. The project was designed to examine testing practices, uses, impacts and costs encompassing a wide range of formal and informal assessment measures. Phase II of the Test Use Project explored the direct and indirect monetary costs as well as the opportunity and psychological costs of testing in an inner city and suburban elementary school, and costs of basic skills testing in their districts. A cost accounting model was selected to identify and determine the magnitude of costs in testing. Data were gathered in the districts from relevant documents, discussions with appropriate officials, and interviews with personnel involved in basic skills testing. School data on costs associated with all achievement testing was collected by formal interviews with principals, instructional staff, school specialists, and resource personnel. Findings by the districts and the two schools regarding testing costs are discussed in separate chapters. A chapter on psychological costs examines teachers' attitudes toward tests and the psychological cost study procedures, and summarizes teacher and student commentaries. Appendices include teacher, administrator and student interview documents. (CM)