this is a 2 part answer,
1) your scaled factor is determined by the your map size, a "To" scale drawing is a percentage of the actual size of the object being drawn on the map
2) using autocadd for most drawings and draft's you typically draw the object at a 1:1 ratio, then apply the desired Scale (or scale factor) to fit the the desired paper size
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Scale drawings are used by artists, architects and builders to get an accurate drawing either smaller or larger than the actual thing is.
proportions are used in scale factors; scale factors ARE proportions
Not all drawings are done to scale, sketches of buildings and people for instance. However if it is a technical drawing the draughtsman/woman will state on the drawing the scale used.
for showing a preview, or planning, without actually building the real structure
Common and frequently used scales include 1:5, 1:10, 1:20, 1:50, 1:100, 1:200, 1:500 and 1:1000. What scale is used purely depends on the situation, and what would be best suited, considering factors such as space and size.