Arguments for replacing standardized multiple choice tests with performance assessment that encourages teachers to devote more attention to higher order skills, and thus results in increased student achievement, are based on three assumptions: (1) the teaching profession, key decision makers, and parents will accept performance assessment measures as valid indicators of student achievement; (2) the use of performance assessment for accountability purposes will influence teachers to place more emphasis in their teaching on content that has significance for real-world tasks; and (3) the technical problems associated with developing performance assessments are solvable and the cost (in time and money) of this form of testing can be sustained. This paper examines evidence for the soundness of the three assumptions. The paper concludes that these assumptions may overlook critical facts about how professionals and parents are likely to respond to the introduction of performance assessment measures in schools, and suggests that a number of obstacles are likely to be encountered in the process of reforming assessment practices in schools. (Contains 12 references.) (JDD)