Performance assessment involves students performing real-world tasks that demonstrate meaningful application of knowledge and skills. It uses authentic, real-life situations that integrate prior knowledge and higher-order thinking skills. Students explain, justify and defend their reasoning on sustained work over days or weeks. Performance is directly observable. Formative assessment collects, interprets, and uses information to help teachers improve student learning. It should measure clearly defined learning objectives, use appropriate test items for the outcomes, and improve student learning.