This book summarizes the international evidence on methodological issues in standard setting in education. By critically discussing the standard-setting practices implemented in the Nordic countries and by presenting new methodological approaches, it offers fresh perspectives on the current research. Standard setting targets crucial societal objectives by defining educational benchmarks at different achievement levels, and provides feedback to policy makers, schools and teachers about the strengths and weaknesses of a school system. Given that the consequences of standard setting can be dramatic, the quality of standard setting is a prime concern. If it fails, repercussions can be expected in terms of arbitrary evaluations of educational policy, wrong turns in school or teacher development or misplacement of individual students. Standard setting therefore needs to be accurate, reliable, valid, useful, and defensible.  However, specific evidence on the benefits and limits of different approaches to standard setting is rare and scattered, and there is a particular lack with respect to standard setting in the Nordic countries, where the number of national tests is increasing and there are concerns about the time and effort spent on testing at schools without feedback being provided. Addressing this gap, the book offers a discussion on standard setting by respected experts as well as profound and innovative insights into fundamental aspects of standard setting including conclusions for future methodological and policy-related research.