Let S = S g,p be a compact, orientable surface of genus g with p punctures and such that d(S) := 3g − 3 + p > 0. The mapping class group Mod S acts properly discontinuously on the Teichmüller space T (S) of marked hyperbolic structures on S. The resulting quotient M(S) is the moduli space of isometry classes of hyperbolic surfaces. We provide a version of precise reduction theory for finite index subgroups of Mod S , i.e., a description of exact fundamental domains. As an application we show that the asymptotic cone of the moduli space M(S) endowed with the Teichmüller metric is bi-Lipschitz equivalent to the Euclidean cone over the finite simplicial (orbi-) complex Mod S \C(S), where C(S) of S is the complex of curves of S. We also show that if d(S) ≥ 2, then M(S) does not admit a finite volume Riemannian metric of (uniformly bounded) positive scalar curvature in the bi-Lipschitz class of the Teichmüller metric. These two applications confirm conjectures of Farb.