This article introduces educational assessment topics and terminology to readers in business education. The outcomes‐based education and accountability assessment movements in K‐12 public education have raised issues and controversies that now face business schools engaging in accreditation and program improvement efforts. The current AACSB standards and their assessment components can be profitably compared with similar endeavors in other educational settings. Examples of contemporary practice in business schools illustrate the pros and cons of educational testing methods. Current controversies and pitfalls in educational assessment are discussed for the purpose of clarifying and guiding practices in post‐secondary settings.

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