That's precisely what it is a method of controlling all basic inputs like ps/2, serial, parallel, I/O, usb ports as well as managing voltages for hardwares like the cpu, memory, video card slots, pci expansion slots, etc. along with maintaining user defined settings and the time/date information.
The bios also looks for the boot device reading the mbr information in order to start the boot loader. That also sees options for different hardware modes along enabling or disabling things automatically or by user manually defined settings like those who oc the cpu and/or memory.