A simple question on Xmedia Recode

Hi guys
I have just started to test out this program.
I think it looks like it could be just what I want.

One quick question
The Tabs Format / Profile
This has a drop down list, the first option of which is Custom
The others are all named etc.

I am right in assuming that the custom setting lets you set any video and audio output settings that you want.
And the others are all preset to suit certain devices that the video will be used on ?

Thanks