Three kinds of instructionally sensitive achievement tests are described which provide useful information on formal schooling proficiencies: placement, progress, and attainment tests. Procedures to design, develop, and empirically verify attainment and placement tests are presented. The methodology is designed to ensure that the test instruments and results serve carefully defined functions and accurately describe and reflect instructional program effects. The specific concepts and skills addressed and the emphasis they receive in the instructional materials and procedures provide the basis for defining the test and reporting structure. The attainment test development process involves: (l) identifying and analyzing instructional segments; (2) specifying, and representing accurately and proportionately, the skills, concepts and outcome for each segment; and (3) verifying generated prototypical items by analyzing proficiency patterns of prototype test results. After attainment test preparation, placement tests can be developed. Items selected should yield information to differentiate student assignment to the most appropriate initial instructional segment. Preliminary results indicate that the methodology is extendable to a broad range of instructional programs and product systems. (Author/BS)