Standards, passing scores, or cut scores have been seen as an element of criterion-referenced tests since their introduction. This paper discusses at least two issues surrounding the establishment of cut scores which appear to need clarification: (1) the theoretical definition of a cut score; and (2) decisions which must be made in selecting a procedure within a particular context. Examples from a state testing program show how the theoretical definition of a cut score affects the standards set and why various procedures were selected in specific contexts. (LMO)