A space contains 2 values that can be affected by a calculation modifier: the area and the perimeter. You can choose to have a calculation modifier apply to either or both of these calculations.
For example you might want to set up a modifier that reduces the calculated base area by 50 percent. (This is obligatory for several space types in various international architectural standards.)
Or you might want a modifier that deducts length from the perimeter of a room for openings and stairs. This would be helpful in calculating the amount of baseboard material needed for this room.