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Incremental data converters (IDCs) are useful in instrumentation and measurement applications, where low-frequency analog signals need to be converted into digital form with high accuracy and low power dissipation. They are particularly well suited for applications where a single analog-digital converter is multiplexed between many channels. This paper proposes an exact design methodology for IDCs, which optimizes the signal-to-noise ratio of the converter under practical design constraints. The process also allows the designer to apportion the noise budget in an arbitrary manner between thermal and quantization noise. The design process is illustrated by an example which describes the optimization of a third-order multiplexed IDC.