based on a structural equations modelling analysisof data from a mail survey we found that the more accentuated exogenous uncertainty a company faces, the maor accentuated is the expected trend towards flexibility in the budget system, and vice versa; the more endogenous uncertainty they face, the more negative are thore attitudes toward budget felxibility. we also found that these relationship were not present with regendd to the attitudes towards the usefulness of the annual budget. Noteworthy is, however, that there was a significant negative flexibility. thus, our results reem to indicate that the degree of flexibility in the budget eyetem in influenced by both general attitudes towards the usefulness od traditiona; budgets and by the actual of eoxgenous uncertainty a company faces and by the atrategy that it executes