The method of fusing is to fuse the cable.
Smaller fuses are safer so if you are using a cable where the cable rating can handle more current than the device drawing\supplying the current, then use the lesser size fuse to compensate.
IE- fusing amp, they should tell you what size fuse to use. Technically a smaller fuse is fine...Example- Crescendo 5500 can run all day long @1ohm on a 250-300A fuse even though they suggest 500A.
IE- fusing front to rear batteries. This should be fused with the current rating of the cable. I NEVER recommend fusing any single cable greater than 300A. Both fuses should be fused with same size.
IE- Alt charging cable- Fuse Each cable(or the one if only one is used) about 15% greater that of the Alternator COLD rating itself but not exceeding 300A(my opinion).