Um, no.
You can burn a standard audio CD with iTunes, which is the **default**. You can also burn a standard MP3 CD or a Data CD (which usually produces an AAC CD). Sounds like someone set yours to Data CD mode.
How to fix it:
Since you probably have a PC, here's your instructions.
Go to the Edit Menu.
Select Preferences.
Click on the Advanced tab in the window that appears.
Click on the Burning tab there.
Click on "Audio CD".
Click on OK.
You're done! You can also select MP3 CD if you wish to make one of those. And yes, this is in the iTunes documentation.
I've been burning CDs (both standard audio and MP3) from iTunes for years and using them in my cars.
Um, yes.
My ITunes is already set up the way you describe. It has been all along. I CANNOT directly burn audio CD's that are playable. Sorry!