This is one of three publications prepared by the Ohio State Board of Education to assist schools in implementing a competency based education program, as required by the 1983 revised minimum standards for elementary and secondary schools. This document addresses the assessment requirement, with emphasis on defining, comparing, and contrasting various options for meeting this requirement. The first section provides an overview of the competency standard, lists the steps to follow in establishing a competency program, outlines decisions that a district may or may not make, describes the various uses of assessment/test results, and identifies important issues related to the testing program. The second section examines each of these highlighted issues more closely, discussing several options for each. In the third section, other important issues are identified, procedures for dealing with them are detailed, and implications for a district are discussed. These issues include staffing, resources, cost, assuring fairness, technical considerations, evaluation/review, and coordination with existing programs. The fourth section provides suggestions for developing a management plan that can be used to monitor progress. In the final section, sample timelines for activities illustrate the sequence in which events may occur. A bibliography is included. (TE)