Your money doesn't go as far if you live the same lifestyle (eating out, or generally labor-intensive services) but you definitely can live relatively cheaply in Switzerland because the prices of most essential goods don't vary as much between countries as some like to claim. What is expensive in Switzerland is labor. If you cook, you won't be spending much more on groceries than you would in Germany or Italy. Factoring in personal taxes, which are generally much lower in Switzerland, makes them virtually equal in my experience.

I can't comment on Norway as I have never been, but I live in Switzerland right now and I, along with other students I know here, typically live relatively cheaply by avoiding most optional services.

That's the reason why people work for a company in Switzerland and live in Germany.