Yes, this works well, and in fact most of these wire bundles have uniquely colored wires (stripes, dots, etc..) so no guessing and testing with an ohm meter.
The key however is that most of these wires are about 20-22 gauge, meaning they're very thin.
Don't even think about running "power" to something using them, like an incandescent light bulb or buzzer or something. They will burn up from the amperage. But to act as a switch connector they will work well