What are the best techniques for applying drywall caulking to achieve a smooth and seamless finish?

To achieve a smooth and seamless finish when applying drywall caulking, it is best to use a caulking gun for precise application, apply the caulking in a steady and even manner, and use a damp sponge to smooth out the surface before it dries. Sanding the dried caulking lightly can also help achieve a seamless finish.