Competency-based assessment requires the meaningful evaluation of students' competence and aims to reduce the theory-practice gap by promoting continuous competency development. In this approach, clear definition of competencies, accurate assessments, and effective feedback are all essential for assessing students' attainment learning goals (knowledge, attitudes, skills). Each competency is defined as a learning outcome with milestones outlining stages of development from novice to master, and formative assessments serving a dual purpose: assessing what has been learned and what is required to reach the next milestone level.

https://tlc.uthsc.edu/competency-based-assessment/