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This is completely false, it has nothing to do with level of the course.
If you look in the course details it tells you which rooms are used each year for classes. Class sizes cap out at 8 students. You need one room that fits 8 for each set of 8 students that are in that course during whatever year of the course that set of students happens to be in.
Many courses don't use the same rooms from year to year and since you can shut off student intake it's on you manage how many students you have coming in to any particular course for each year.
Say a course needs the science lab one year, but not the next, that means only your first year students need a science lab and you need one lab for every 8 students in their first year of the course that particular year and you need whatever different class room the second year students need.
Look in course management for rooms needed each year and build class rooms around groupings of 8 students, it's that simple.
You need 1 classroom for every 8 students, that's the maximum class size a room can be used for. If the room isn't large enough for 8 students, it's too small and you're wasting teachers.
If the room is larger than that, the only reason is to make it look nicer or fit more equipment in it (which may be asked for for student assignments if you don't already have a piece of equipment they can view somewhere on campus to complete their homework ~ homework is optional and just gives them a grade boost, they will ask for equipment if you don't already have it. Failing to give it to them just slightly risks them failing the course or getting a lower grade, which may mean you make slightly less money from that student)