A cognitive item response theory model called the attribute hierarchy method (AHM) is introduced and illustrated. This method represents a variation of Tatsuoka's rule‐space approach. The AHM is designed explicitly to link cognitive theory and psychometric practice to facilitate the development and analyses of educational and psychological tests. The following are described: cognitive properties of the AHM; psychometric properties of the AHM, as well as a demonstration of how the AHM differs from Tatsuoka's rule‐space approach; and application of the AHM to the domain of syllogistic reasoning to illustrate how this approach can be used to evaluate the cognitive competencies required in a higher‐level thinking task. Future directions for research are also outlined.