About index.php ,System and Application folders in the same root

[eluser]sirfak[/eluser]
Hello...
surely it has..
How is it? I mean I have moved my application folder from system folder. Is it like the value of $application_folder and $system_folder are relative to the location of the index.php file?

Because by default also we had the same value when application folder was inside system folder?
Thanks
sirfak