Maybe too much detail, but you might like to contrast uncompressed (wav), lossy (mp3,ogg,aac), lossless (flac, alac) compression in the "wave replication" section. Uncompressed, you're going to get something like 10MB per minute of audio:
44000 samples per sec * 16 bits per sample *60 sec per min * 2 channels /8 bits per byte /1024 bytes per KB
= about 10 Megabytes per minute.
So uncompressed, a crap 3-5 min. iTunes single would be 30 to 50 MB.
Lossy compression at tolerable quality will get you a factor of 10 smaller: 1 MB per minute and that's nominally what you see in online music stores: 5MB or less for 5 mins.
Tolerable is subjective and depends on your listening preferences: I find this 10X lossy compression (128 kilobits per sec) good 'nuff for listening in the car but not acceptible for listening a quiet room with good headphones. I gather the typical iTunes consumer probably never does this, judging by the shite quality of any commonly available headphones less than 50 USD.
The best you can do with lossless is about 50 percent smaller. (Why?) So around 5MB per minute.
Lossless compression is reversible: you can recover every single bit of the original file because nothing was thrown away. Lossy compression is obviously not reversible: duh!, you applied some complicated technique to THROW AWAY much of the original data so of course you can never get back the original.
So not being an audiophile with bionic ears, why would you want to use a lossless codec?
Long term storage...that good-sounding mp3 you got on Napster back in 1998, transcoded to ogg in a fit of FOSS zeal, then transcoded that to wma in a fit of cynicism, then converted to aac because you wanted to do everything with your shiny new iPhone is now getting pretty threadbare. Doh! It seems you lost the original mp3 sometime in the noughties, when your backup CDROMs (which the marketing blurbs said would last 100 years) got
eaten by a fungus.
Short answer: You would not want to save an audio file you are editing/transcoding with a lossy format because the quality would get worse with each edit and save.