Abstract: The main aim of this study is to determine the most important factors of the external environment that influence the implementation of modern methods of management accounting for the purpose of improvement. A descriptive analytical method was employed in order to achieve the objective through administration of questionnaire to gather the opinion of the selected population. The findings revealed that the support of the state and the provision of loans into the economy contribute to the re–engineering of its operations by purchasing an advanced technology equipment and market research such as: competitive price study, customer requirements, selection of reliable suppliers, data from other economic units. These parameters pave way for the implementation of all or some modern methods of management accounting in the Iraqi economy and thus, led to development of the efficiency and productivity improvement of the industry in Iraq.