Step 1: Recall the meaning of rating factor.
In time study, the rating factor measures the worker's performance relative to a standard performance.
Step 2: State its purpose.
The observed time is adjusted using the performance rating to obtain the normal time, which is later used to determine the standard time.
Thus, the rating factor is used
\[
\boxed{\text{To adjust the observed time to standard time based on the worker's performance level}.}
\]
Hence,
\[
\boxed{(A)}
\]
is the correct answer.