In this article engineering business is considered as the cycles of converting manufacturing capital and innovation capital of enterprises into monetary capital. The conversion cycles are implemented by organizing the production based on market relation within technological stages being the zones of financial responsibility (liability); by using the management accounting system forming the organization of production in monetary equivalent and the innovation activity ensuring the equality of product value and its market price. The relevance of the research topic is determined by the necessity to create motivating system of innovation activity in engineering enterprises. Our aim is to ensure a continuous growth of market innovation added value of products. The main task is to develop tools for managing a basic operation cycle converting manufacturing capital into monetary capital in the form of products whose consumer properties are competitive and for managing an innovation cycle converting an income producing idea into market added value. As the investigation method we used the process approach in the formation of operation and innovation cycles parameters. As a result, the integrated mathematical model has been created that allows designing operation and innovation cycles; developing a management accounting system and on this basis to implement product and technological innovations. Studying conversion operation cycles of several engineering business enterprises allows us to formulate necessary requirements to the organization of production. Consumer properties and technological costs of final products should be formed by being transferred within technological stages being at the same time the zones of financial liability. Management accounting should ensure the equilibrium of operation basic and innovation cycles converting manufacturing and innovation capital into monetary capital and market added value of products respectively. To motivate innovative activity it is necessary to personalize intangible assets that guarantee market added value. Subsequent research will focus on the design, development and implementation of management accounting systems for manufacturing-technological systems to manage innovation processes ensuring market added value of each technological stage and final products.