Sequencer Settings - what do they affect?

First time user here, I'm a little confused about the documentation about the Sequencer Settings (Control+0), the settings such as quality, codec, etc, what exactly do they affect (and by that I mean at what level).
Do they affect the way they are rendered as I am previewing my project or when I do the final render/export?
Does it affect quality and codec if I use FC to export or if I send to Compressor will it affect the way Compressor renders it? what if I use pass-through settings with compressor? Will the Sequencer Settings in FC affect that too? Basically I'm looking for the scope of how much of FC's Sequencer Settings affect.

It effects your performance and rendering in FCP. It effects your export functions and output to tape. It does not effect send to or share.

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