For me... I step drill. Starting with a center drill. I had been taught by an old machinist, that each of the drills should be slightly larger than the width of the chisel point of the next large drill you will be using in the step. So, for example: if my final bit is a 1/2" drill. I look at the width of the chisel point and pick the next smaller bit so that it's diameter is slightly large than the width of the chisel point on the 1/2" drill. For a 1/2" hole, I'd personally do it in at least two steps depending on material (Center Drill, Intermediate Drill, 1/2" Drill).
If the accuracy of the ID needs to be close, I drill it close and then ream to final size.
If Concentricity is important, I drill, then bore, and possibly ream (if the ID is reasonable for me to ream)
Hope this helps.