What does create AAC version in iTunes mean?

[iMore Question]

I always see this better never use it. Whats it do?

 

[Chris Parsons]

Essentially it will allow you to convert MP3 files to AAC versions, a great option to help make the files smaller but not lose any quality.

Advanced Audio Coding (AAC) is a standardized, lossy compression and encoding scheme for digital audio. Designed to be the successor of the MP3 format, AAC generally achieves better sound quality than MP3 at similar bit rates.

 

[Jaguarr40]

Thank you for the knowledge Chris and a very good answer that I know many people wonder what AAC is and now they also know how AAC benefits them by making a smaller file size saving storage space.