Applying a scale factor to text and dimensions was quite common in the days before AutoDesk introduced paper space layouts and viewports and everything was done in model space. For example, let's say we were drawing a plan view of a house and ultimately it would be plotted at a scale of 1/4"=1'-0". The scale factor for our text and dimension heights would be 48 (1/4 * 12 or 4*12/1 = 48 ) So if we wanted our text to plot at a height of 1/8" it would have to be given a height of 6" in our drawing. (.125 * 48 = 6 ).
Is it possible you were thinking of viewport scale factors? There is a way to assign a scale to a viewport via the Zoom command utilizing the Scale option. It is referred to as the n/XP scale factor. As an example to assign the scale of 1/4"=1'-0" to a viewport the scale factor would be expressed as 1/48xp. Another example: a scale of 1/8"=1'-0" assigned to a viewport would be expressed as 1/96xp.
While many older users might remember and even use this method AutoCAD now makes it easier to assign a scale to a viewport by selecting it directly from a Scalelist.
Are you using metric or imperial units?
What scale or scales were you planning on using for your drawing?