For me there are 3 steps in an ongoing Assessment process.
The first step is a Formative assessment in form of a multiple choice quiz that students can take it online in their home and it simply acts as a motivational tool for study the textbook material or the posted lecture notes. Grading should be very generous for those who just studied the material. I advocate one formative assessment per chapter.
The second part of the Assessment process is a Summative assessment which comes in a form of problem solving technique applications or concept questions. It is a more difficult one and it is given either at the end of the Chapter or at the end of chapters with interconnected concepts. I think about it as a series of "midterms".
The third part of the Assessment is the "Authentic" one where students have to apply the material they learnt in class in everyday situation. In this type of assessment grading is not based on the choice of "right" or "wrong" answer but on how the "connection" between the class concepts was done by the students. This type of assessment comes in a form of mini-project with free response. This type of assessment is given at the end of the class.