The best audio formats for sound quality are uncompressed or lossless compression files—think WAV, FLAC, and M4A. That's because these formats retain the original sound quality, though you'll have to put up with the fact these files will be large.

WAV. WAV (Waveform Audio File) retains all the original data, which makes it the ideal format for sound engineers. “WAV has greater dynamic range and greater bit depth,” creative producer and sound mixer Lo Boutillette says of her preferred format. “It's the highest quality,” Berry agrees.

The popular MP3 format is probably the best-known example, but the AAC format found on the iTunes Music Store is also common. Most formats offer a range of degrees of compression, generally measured in bit rate. The lower the rate, the smaller the file and the more significant the quality loss.

The Codec encodes and compresses, then decodes and decompresses the data that makes up your video. It is about what comes out of the camera; the filming and recording process. The Format or Container, stores the audio, video, subtitles, and other elements that make up your video. It's about the end product.