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Some cards say Negate target Activated power... so, Costs are always taken immediately... so if you activate...
think of Exhaust this character---> Get effect... (see Flamethrower.. is not an activated power) Scarlet Witch triggers when "activated" payments are used... other things like Pay 3--> Get effect... could be used many times unless it says once per turn... and you are still able to attack after using the effect.
The cost must always be met...
IF a card ever came out that said target character cannot exhaust this turn... you will not be able to activate.. because that is what triggers the ability.