How does ceiling height effect room volume / heat losses? (Bentley Hevacomp)

Hi, 

How does ceiling height affect room volume / heat losses?

I have looked at the back end of the calcs and I can see the following formula to work out infiltration losses: 

 

Infiltration heat loss              =            F2 nV (tr - to) / 3

How is the volume is the above formula calculated? (I assume this is what affects the heat losses in terms of the ceiling)

Does the ceiling height determine the volume of the room?

For example, we have a 1 by 1m room, that is 2m tall. 

In the first instance there is no ceiling applied, therefore the volume is 2m^3?

In the second  instance there is a ceiling at, say, 1m, therefore the volume is 1m^3?

Please confirm if my understanding is correct.

Kind regards

Toby