The term form factor is particularly used in alternating current system. An alternating current waveform is sinusoidal in nature, so it has a peak value in positive and negative region both. But the average value of the signal is taken for the sake of convenience. Generally the form factor refers to the ratio of the RMS value (Root mean square value) to the average value of an AC signal waveform. For the same power, the value of direct current and alternating current is different from each other due to the phase sequence and sinusoidal behaviour of alternating waveform. So sometime it is needed to judge the quality of the AC voltage, and that is why form factor is used. It determines the ratio of the direct current with respect to the given alternating current for the same power.
The form factor is different for different types of AC waveform, that is square wave, sine wave, pulse wave etc. The concept is understandable by some other means. Suppose you have a coil and a DC source and an AC source. You connect the DC source with the coil and found that the coil is heated up after sometime, then when you connect the AC source with the coil and also found that the coil is heated up to that same level. But the amount of current is different for each sources. Since the RMS calculation is quite difficult in digital, therefore the average is determined the output is multiplied by the form factor of a sinusoid wave.
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