Can you add pictures into AutoCAD, and control the scale properties?

Q. Basically, I was told that you can take a picture of lets say, a piece of drilling equipment. Upload it into Autocad , scale it to whatever you wish, edit it, and know all the measurements without actually measuring the entire thing.

Example:

My colleague just measured one side, and uploaded the picture and found out all the other dimensions, without needing to sketch out on the field, and/or waste time measuring it, by just knowing that one dimension. He did mention something about line art I believe.

Unfortunately he is no longer working here, but I believe it would be essential to learn how to do.

Is this possible in AutoCAD 2012? If so, how?

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