Correct, and often a very slight (less than 2-3 MOA) of correction will need to be applied depending on how the scope/mount/barrel relationship is (considering that not all barrels are clocked true, even if the scope is perfectly aligned on the reciever, and the barrel flexes anyway during firing).
The true value lies in being able to 1. get very close to a correct zero from the 1st shot and 2. take a picture after zeroing to show where the alignment is, for future reference if the rifle/scope is knocked or dissasembled for cleaning etc.
The rear end of the collimator can be screwed off so that a small torch can be shined through it (and hence the scope, from the objective lens end) which will give you a nice overlay projection onto a white wall in a darkened room. The use of a window or door frame that is checked with a spirit level to be a known 90° makes the process very repeatable without faff of hanging a pendulum etc.
In terms of levelling the collimator itself, you need to make sure it is scrwed onto the flat of the expanding auger properly, and then once secure in the chamber it is easy to see when the inner reticle is 'level' with the method described above.