Elevation fire modifier

[krmiller]

That is correct.  I ran a test on this when checking the manual.  If you turn off On Map Results you get a box showing the results of your fire.  This shows the Terrain Modifiers and if you place a unit one level lower it will show -20% if no other modifiers are present.  At 2 levels or more it will show -40%.

This is a good way to verify anything you want to test.
1.  Open the Scenario Editor (cwedit.exe)
2.  Select a scenario to load to use for testing.
3.  IMMEDIATELY SAVE AS !!TEST (This will keep you from modifying the scenario,  the !! will place it at the top of the scenario file list making it easier to find.)
4.  You can then use the editor to place units in the positions and at ranges you want to test.
5.  Start a new Normal game with both sides set as Manual and No FOW.
6.  Set your Optional Rules as desired.
7. When the game opens make sure On Map Results is not checked and run your checks.  As you Fire or Melee you will get results showing the unit strength and fire modifiers.

I have used this method for many years to learn how things work and to check out bugs.
The cwedit Help File shows you how to place and move units.