Competency-based grades

Does a passing grade (C) in a class mean achieving all of the course's competencies or student learning outcomes? If so, the grades above C become reflections of how well a student did in exceeding the basic achievement of those competencies. The instructor demonstrates the relative weight of each competency by assigning the class grades accordingly. Or the instructor could let the course grade come from the assignments, as usual, and not worry about whether a passing grade represents achieving all competencies.

Once a student has demonstrated a competency, that student could choose not to complete any additional assignments associated with that competency and accept a C grade on each. This requires each assignment to be tied to a single competency.