Its all about the mass, velocity and drag coefficient of the bullet or maybe we know it as the bullet's BC. Its complex and thankfully as shooters, manufacturers give us the bullet's BC, we just need to hope that the numbers given are real world figures.
Those that want a more in depth explanation look here: http://www.answers.com/topic/ballistic-coefficient
Below is a small copy and paste from this site.
Bullet performance
The formula for calculating the ballistic coefficient for a bullet is as follows:[1][2]
BC = SD/i = M/,i x d^2)
where:
* BC = ballistic coefficient
* SD = sectional density, SD = mass of bullet in pounds or kilograms divided by its caliber squared in inches or meters; units are lb/in2 or kg/m2.
* i = form factor, i = drag coefficient of the bullet/drag coefficient of G1 model bullet,G1 drag coefficient = 0.5190793992194678)
* M = Mass of object, lb or kg
* d = diameter of the object, in or m
This BC formula gives the ratio of ballistic efficiency compared to the standard G1 model projectile. The standard projectile originates from the "C" standard reference projectile defined by the German steel, ammunition and armaments manufacturer Krupp in 1881.[3] The G1 model standard projectile has a BC of 1.[4] The French Gavre Commission decided to use this projectile as their first reference projectile, giving the G1 name.[5][6]
A bullet with a high BC will travel farther than one with a low BC since it will retain its velocity better as it flies downrange from the muzzle, will resist the wind better, and will “shoot flatterâ€,see external ballistics).[7]
This difference in trajectories becomes more critical at longer ranges. For some cartridges, the difference in two bullet designs fired from the same rifle can result in a difference between the two of over 30 cm,1 foot) at 500 meters,550 yards). The difference in impact energy can also be great because kinetic energy depends on the square of the velocity. A bullet with a high BC arrives at the target faster and with more energy than one with a low BC.
Since the higher BC bullet gets to the target faster, it is also less affected by the crosswinds.
The transient nature of bullet bcs
Variations in BC claims for exactly the same projectiles can be explained by differences in the ambient air density used for these BC statements or differing range-speed measurements on which the stated G1 BC averages are based. The BC changes during a projectile's flight and stated BC's are always averages for particular range-speed regimes. Some more explanation about the transient nature of a projectile's G1 BC,it rises above or gets under a stated average value for a certain speed-range regime) during flight can be found at the external ballistics article. This article implies that knowing how a BC was established is almost as important as knowing the stated BC value itself.
For the precise establishment of BCs,or perhaps the scientifically better expressed drag coefficients), Doppler radar-measurements are required. The normal shooting or aerodynamics enthusiast, however, has no access to such expensive professional measurement devices. Weibel 1000e Doppler radars are used by governments, professional ballisticians, defense forces, and a few ammunition manufacturers to obtain exact real world data on the flight behavior of projectiles of interest.