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What is meant by System Memory in android? [closed]

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http://stackoverflow.com – I have an LG -E405 phone running Android 2.3.6. As can be seen here, the phone has 1GB internal memory and 384Mb RAM. When I look at default App manager, this is what I get, RAM - 231Mb System Memory - 157 Mb. Internal Memory - 378Mb. SD Card - 2Gb. Also, all the applications I install, by default take up space from System memory. Many tutorials explain about moving apps from internal memory to SD Card to free up space. But, in my phone I only get the option to move from System Memory to Internal Memory. It is like a whole new layer has been added in the memory heirarchy. So, what is (HowTos)