All the BC is is a co-efficient of a theoretical bullet with a BC of '1'. So if your bullet is half as efficient as this fictional bullet, it's .5. If it's twice as efficient, then it's 2.0.
It's a VERY imperfect calculation. There are a few 'drag functions' or 'shapes' of these theoretical bullets, most commonly used is the 'G1' function. The function accounts for things like velocity, weight, length, shape, and a few other things. Problem is, this function doesn't perfectly describe all bullets out there, yet is universally applied. The same drag function is applied to RN's, flat bases and boat tails indiscriminately. It just doesn't fit properly.This is why some manufacturers provide a few different BC's to describe their bullets at different speeds. This is a big, ugly kludge, a proper drag function takes speed into account as a variable in the function.
The functions themselves break down around the 1300 fps 'trans sonic' mark (exact vel. depends on the bullet length). Even if you've got the right drag function for your bullet shape, the rules of fluid dynamics are vastly different at sub- and super-sonic velocities, and then there's the 1100-1300-ish fps 'trans' sonic transition zone which is even messier, and in truth, no one really understands it.
Nevertheless, BC's are usually 'accurate enough' to provide usable data in most cases.