Does Option Combination Pull Price from SKU?

I see in the Option Combination settings there is a box for SKU but not one for a price. I see you can enter any sku you like, no matter if the matching product code actually exists or not. So I assume that it doesn’t pull the price from the matching product code and is for informational purposes only?

If you can enter a SKU that doesn’t exist for a combination, what does track with options do? Nothing? If the combination sku matches a product code, does it decrement the qty for that product code?

I suppose you can only show a price based on options, otherwise if it was pulled from the matching product code, you wouldn’t know what the price was until after you added it to the cart?